MONEY AND

BANKING 2
 Types of account are deposit account, current
account and savings account.

 Types of loan are personal loan, commercial

loan and mortgage.

2
 The main types of financial institutions in the
market for money are banks.

• Banks are just like any other business except the

product they supply is money, in the form of
loans and other financial products

3
 Banks earn profit by
1.Charging interest on loans
2.Charging fees for financial services
3.By making investment

 The central bank(the center of the banking sys.)

1.issues notes and coins
2.manages payments to and from the government
3.manages the nation's gold and foreign currency reserves
4.maintain the stability of the national currency and the
money supply

4
Define barter:
Exchanging one good or service for another

What is a bank?
A Banks is a financial intermediary between customers who want to deposit
money and customers who want to borrow money.

What is a money?
Money is any item (in the form of notes and coins) that is generally accepted as payment for
goods and services.

Define Personal debt:

The total stock of accumulated borrowing by a firm