Banking

Consumer Finance Company

*a non-deposit type institution *provides small loans for durable goods (washing machines, refrigerators, etc.) *provides loans to consumers who are unable to get loans elsewhere at a HIGHER rate

Credit Union

*a deposit-type institution *must belong to a specific organized group to use this institution (usually a workplace) *just like a Commercial Bank, but money is insured through the NCUA

Savings and Loan Associations (S & L)

*a deposit-type institution *offer savings accounts to customers, give that money to give loans to customers *mostly gives mortgage loans (to buy a home)

Pawn Shop

*a non-deposit institution *take valuables in and receive instant cash (usually less than the item is worth)

Mortgage Companies

*a non-deposit type institution *allow you to take out a loan to buy home

Life Insurance Company

*a non-deposit type institution *offer policies to people so that their loved ones are financially taken care of after they pass away

FDIC (Federal Deposit Insurance Corporation)

an agency developed by the federal government to regulate banking and and investment activities which will insure deposits up to $250,000.

Check-cashing Outlets

* a non-deposit type institution *will cash a check for a fee to allow you to pay utility bills, etc.

Federal Reserve System

*a bank for banks *enables the FDIC to insure our money *there are 12 across the U.S. *our money form McKean County goes to #3 in Philadelphia

Mutual Savings Bank

*a deposit type institution *all profits go back to account holders (not bank officials) *did not show much success, so converted back to Commercial Banks

Commerical Bank

*a deposit-type institution *also called a "full-service" bank *deposits are insured by the FDIC up to $250,000.

1. Interest 2. Fees 3. Investments

Name the 3 ways commercial Banks make money.

1. Credit Score 2. Co-sign 3. Collateral 4. Capacity (to pay) 5. Conditions

Name the 5 Cs of lending.

1. Accept Deposits 2. Transfer Funds 3. Lending Money 4. Financial Advice 5. Storing Valuables 6. Manage Trusts

Name the 6 services that Commercial Banks provide.

1. Commercial bank 2. Savings and Loan Association 3. Mutual Savings Bank 4. Credit Union

Name the four deposit-type financial institutions.

1. Life Insurance Company 2. Investment Company 3. Consumer Finance Company 4. Mortgage Company 5. Check Cashing Outlet 6. Pawn Shop

Name the six non-deposit type financial institutions.

Interest

What is determined by Principal x Rate x Time

Mortgage Loan

a loan used for purchasing a home

Beneficiary

one who is named in a life insurance policy to receive benefits

NCUA(National Credit Union Administration)

the federal agency that charters and supervises federal credit unions and will insure deposits up to $250,000.