junior achievement 3.1 “bank on it”. vocabulary review time! income: income: the payment for the...
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Junior AchievementJunior Achievement3.13.1
““Bank On It”Bank On It”
Vocabulary Review Time!Vocabulary Review Time!
Income:Income:
The payment for the use of resourcesThe payment for the use of resources
Scarcity:Scarcity:
A situation where wants are greater A situation where wants are greater than the resources available to than the resources available to satisfy those wantssatisfy those wants
New VocabularyNew Vocabulary
Bank:Bank: A place of business that receives money, lends it to A place of business that receives money, lends it to
borrowers, and provides other services, such as checking borrowers, and provides other services, such as checking accounts and safety deposit boxesaccounts and safety deposit boxes
Credit Union:Credit Union: A financial institution owned by its members that provides A financial institution owned by its members that provides
savings and checking accounts, loans and other servicessavings and checking accounts, loans and other services
……More VocabularyMore Vocabulary
Circular Flow:Circular Flow: The movements of goods, services, resources, and money The movements of goods, services, resources, and money
between households and businessesbetween households and businesses
Households:Households: Families or individuals who pay money to businesses for Families or individuals who pay money to businesses for
goods and servicesgoods and services
Savings is an important step on the Savings is an important step on the way to financial well being, both in the way to financial well being, both in the
short term and the long term.short term and the long term.~www.investorguide.com~www.investorguide.com
Do you agree with this statement? Why or why not?Do you agree with this statement? Why or why not?
If you received $10.00 from someone for your birthday, how If you received $10.00 from someone for your birthday, how much of it would you save?much of it would you save?
Customers deposit their money into banks or Customers deposit their money into banks or credit unions for safe keeping. Usually credit unions for safe keeping. Usually
people put their money in checking accounts people put their money in checking accounts so they can pay bills and buy goods and so they can pay bills and buy goods and services…. Then people write checks to services…. Then people write checks to
access their money.access their money.
Banks As A Business!Banks As A Business!
Credit Cards
SafetyDeposit Boxes
AutomaticTeller
Machines(ATM)
Debit Cards
Personal Loans
Checking Accounts
Savings Accounts
Online Banking
Banks provide services such
as:
$$$ All Around JA BizTown$$$ All Around JA BizTown
DEPOSITS
LOANS
BUY MERCHANDISE
SALARY
Business
Bank
Student
Economic Flow in a Free Economic Flow in a Free Enterprise System…Enterprise System…
In a free enterprise system money In a free enterprise system money flows in a circular direction, flows in a circular direction, sometimes in both directions. The sometimes in both directions. The people put money into banks and people put money into banks and banks use their money to help banks use their money to help businesses. Then people buy goods businesses. Then people buy goods or services from those businesses. or services from those businesses.
Households pay money to businesses Households pay money to businesses for goods and services. This makes the for goods and services. This makes the
flow of money go back and forth flow of money go back and forth between households and businesses. between households and businesses.
Remember…businesses are Remember…businesses are companies that make or sell companies that make or sell
products or provide services to products or provide services to customers.customers.
Businesses also pay money to households Businesses also pay money to households (people) in exchange for resources such as (people) in exchange for resources such as
work.work.
Remember that banks, credit unions and Remember that banks, credit unions and other financial institutions play an important other financial institutions play an important
day-to-day role in the operation of the day-to-day role in the operation of the economy and the circular flow! economy and the circular flow!
Now it is time to see how much you Now it is time to see how much you remember… Turn to PG. 27 in your remember… Turn to PG. 27 in your
workbook.workbook.