Banks Flashcards
What are banks?
Banks are businesses that act as middlemen between people who want to save or keep their money safe, and people who want to borrow money.
What are the top five banks in SA?
- Absa bank
- Standard bank
- FNB (First National Bank)
- Nedbank
- Capitec
Where and when did banking originate?
Ancient Mesopotamia in 2000BC.
What is a depositor?
A person who leaves money for safekeeping.
Discuss the role of banks.
Because money is used in the exchange off goods and services, it needs to continually pass between consumers and producers. The more the money flows, the more successful the economy will be. The role of banks is to keep the money flowing. The flow is between people and businesses who need money, people and businesses who save and invest money, and those producing goods and services.
Name 6 services provided by banks.
- ATMs
- Internet banking
- Financial advice
- Small business support and advice
- Foreign exchange
- Credit and debit card facilities
(FAFICS)
Discuss ATMs with detail.
The bank has special machines at the branch, or in or near shops, where you can withdraw cash, make cash deposits, transfer money or pay accounts. These machines operate 24 hours a day, 7 days a week. This means people have access to their money day and night.
Discuss Internet Banking with detail.
You can now check your bank balance, transfer money or pay accounts using the internet. This allows you to bank from home or from wherever you have internet access. You can also do your banking at any time.
Discuss Financial Advice with detail.
Banks will advise you on how to best invest your money.
Discuss Small Business Support and Advice with detail.
Banks have people who specialise in helping small businesses.
Discuss Foreign Exchange with detail.
Customers can buy foreign bank notes and transfer money to other countries.
Discuss Credit and Debit Card Facilities with detail.
Customers can apply for credit cards, which allow you to buy now and pay later.
