Money & Banking. What is money…. Medium of Exchange It is accepted in buying and selling goods and services. Easier than barter Store of value It can be set aside for the future and still have value Measure of Value
A Bank is a for profit company that makes money from charging fees and lending money to its customers. Banks pay taxes. Advantages - more locations, more financial products.
A Credit Union is a non-profit cooperative owned and controlled by its members. It serves groups that have something in common, profession, neighborhood… Advantages – lower fees and better interest rates.
Calculating on a savings account for each year…(see packet)
Buying a car:
5 year loan
What is the Interest?