Unit 4 Key Questions - Unit 4 Key Questions Lesson 16 16.a Automated teller machines and debit cards are banking services allowing the consumer to

Unit 4 Key Questions - Unit 4 Key Questions Lesson 16 16.a...

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Unit 4 Key Questions Lesson 16 16.a. Automated teller machines and debit cards are banking services allowing the consumer to withdraw money from their bank account, without actually going to the bank. Debit cards allow the user to take out money from their bank account to pay bills, transfer funds, and make other deposits long after bank closing hours just by having their card with them. ATMs also offers consumers to directly withdraw money (with the use of a certain card) from their card and carry the cash with them when they need it. Mortgage loans is a service that offers the consumers the money they need to pay for houses of other types of property the person is unable to pay or fully pay at the moment. A savings account is a service in banks that allows the consumer to keep the cash in (usually for a short period of time) until it is used. It is a service that protects one’s cash that is intended to be spent in a short while. b. Type of financial institution Example of a product or service What does the product or service do? Trust companies Royal Trust The service manages and invests the funds their clients entrusted them to, usually in their wills, to manage their estates after their death. Credit unions/Caisses populaires Dofasco Credit Union Credit unions are banks owned by their clients. They save together and lend money to each other in times of need. They also decide as a team on whether or not loans should be approved. This service acts like a normal bank, besides the fact that each member plays a part in regulating the business. Banks Schedule I Banks-Royal Bank of Canada Schedule II Banks-ING Bank of Canada Schedule III Banks- Rabobank These deposit-taking institutions is a service mainly for people in Canada to keep their money in safely, as well as borrow money when they need it. c. Financial services People use them to… Businesses use them to… Bank cards -buy products without needing to carry around money -withdraw money from their bank account without having to actually go to the bank -buy what they need or want now, and pay back later
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Traveler’s cheques -go on vacation without the need to carry around all the money -pay for things during the trip (the money is already taken out of the bank account) Direct deposits -receive their wages directly into their bank account -pay their employers their salary directly into their bank account -pay the bills regularly (cable, hydro, telephone) Loans -pay in advance for property, furniture, or other costly products one is unable to cover at the moment -start a new business -pay for new equipment/improve their business Online banking -check account balances -pay bills -transfer funds from one account to another Lesson 17 17.a.
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  • Winter '15
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