Learning Objectives For Opening A Bank Account


Learning Objectives For Opening A Bank Account

Bank sign on glass wall of business center

Money is the most important aspect of our lives and it influences almost everything we do. Money is used to buy and sell, accumulate or invest, make loans, pay wages, and many other things. The process of money transfer is usually done through banks, post offices and money brokers. Money is also usually in form of coins and bills (in coinage, note, bills or coins), but the most commonly used money today are banknotes, money orders and traveler’s checks.


What is Money? A money item is any verifiable account or outstanding account that is normally accepted as payment of debts and goods and payment of taxes, including levies, in a certain country or socio-cultural context. Money has different forms: currency, commodity money, physical money, and banknotes. In fact, money has so many uses, that there is no specific category for money. Money has been called the root from which all others grow, for without money people and their cultures would not be able to survive.


What is Money Makers? Money makers are the institutions and individuals who buy or sell the currencies in the money supply. They include commercial banks, government institutions, organizations trading with foreign exchange, and monetary authorities such as central banks. There are numerous names for money makers. Some of them are: banks, central banks, governments, currency speculators, bankers, trade unions, registered dealers, cooperatives, private money providers, public institutions, central authorities, depositories, treasury stores, and registered money providers. These institutions and individuals keep track of the changes in the money supply.


What are Savings Accounts? Savings accounts are credited with a certain amount of money as a reserve for future purchases. These accounts may be kept in different financial institutions, including commercial banks, money lenders, banks, savings and loan associations, and registered depositories. Money deposited into savings accounts is usually accessible immediately. Deposits may also be carried over to other banks and credited to savings accounts.


What Are Checkable Deposits? Checks are the most common type of deposits. These are made use of by individuals or organizations which require easy accessibility of large amounts of money. Checks can be made out at any bank, and they can also be made at a variety of money providers. Checks are used primarily for monetary transactions.


What Are Key Terms You Should Know About Money Market Mutual Funds? Key terms that you should be familiar with include: certificates of deposit (CD), checkable deposits, money market mutual funds, money market investment funds, certificate of deposit interest rates, and money market investment yields. Key terms also include: discount certificates, certificate of deposit interest rates, and CDs. Other key terms include: thrift institutions, credit unions, and corporate bonds. All these terms are defined below.


Why Do We Need To Understand Money Market Mutual Funds? Money market mutual funds are an excellent option for long-term investment. The key reason why this type of fund is an excellent choice is because it invests both short-term and long-term money markets. By investing in the money market mutual funds, investors will receive both regular growth and income. This is unlike standard certificates of deposit (CD) wherein growth is only received from interest earned, not from capital gains.


Are You Planning To Open A Bank Account? Before doing so, you need to understand the difference between checking and money market accounts. Banks may offer different types of bank accounts. As an example, a savings account allows individuals to deposit a certain amount of money to grow in the bank at a fixed rate while a checking account allows individuals to deposit checks and cash into the bank account without having to pay any interest.


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