Banks, Currency, and Interest

Banks, Currency, and Interest

Currency

• Currency (also known as money) is a system of exchange for goods and services in a country

• Not all currencies have the same value

Currency

• Countries with a strong economy will have currency or money that is worth more and you can buy more goods or services compared to others.

• 1 US Dollar gets you .85 Euro cents

• 1 US Dollar gets you 309 Hungarian Forints

• 1 US Dollar gets you 750 Malawi Kwacha

Multiple Choice

All currencies around the world have the same value?

• True

• False

Banks

• Banks recieve, keep, and lend money

• Banks are a safe way to keep your money

• Banks use your money to make loans to other people and they charge interest for that

Banks

• Money enters a bank through deposits from customers, interest from borrowers, and fees for services like ATMs and credit cards

• Money leaves a bank because of interest and withdraws to customers, loans, and the bank's cost of doing business

• 
  

Multiple Select

What ways can money leave a bank? Click all that apply.

• Deposits

• Interest from Borrowers

• Interest and Withdraws to Customers

• Fees for Services

• Loans to Borrowers

Look at the Handout on Interest

• This isn't an assignment

• Usually we do the first couple questions in class together