Money, Banking, Credit & Consumer Rights
Money
Replaced the ______system in traditional economies
Functions
______- used to trade items
______- Reliability to store, save, and retrieve
______- Can be divisible, each one must be equal to the other, not easy to counterfeit
Banking
Brings savers (______) and borrowers (______) together in the market
Savers - ______
borrowers - ______
Banks are a business and have a ______
Make money off ______and ______on loans
______- Banks want more deposits so they can loan more money
Types of Deposit Accounts
Checking Account
Allows customers to write checks, use ______or withdraw money from an ATM ( Automated Teller Machine)
Money transactions are ______and ______
______does not stay in the account for long
Depositor usually receives ______interest.
Checking/Debit cards
Transfer funds ______
Tied ______to checking accounts
Savings Account
Banks ______to customers based on how much money is deposited.
Money grows larger the ______it is there
Money remains ______for longer periods of time
Certificate of Deposit (CDs)
Customers ______a certain amount to the bank for a certain amount of ______.
Ex. I bought a $1000 CD for 1 year at 4%
______rates of interest than savings
Customers can’t withdraw their money without a ______.
Types of Banks
______- full service to individuals and businesses (most common!)
Savings & Loan Associations – traditionally loaned money to people ______and issued only ______accounts
Credit unions - ______- sponsored by large businesses, labor unions or government institutions – offer ______services at usually ______prices
FDIC
Federal Deposit Insurance Corporation
Insures ______money in the bank up to ______
Most banks are FDIC insured
Loans
Agreement for borrowing money with ______.
Used to make expensive purchases
Banks make ______on the interest paid for a loan
In order to make loans, banks have to have ______.
To have money, banks must ______.
Can increase the supply of money
______- the amount borrowed
Interest - ______of borrowing
______- rate of cost to borrow
Types of Loans
Fixed – interest is ______
______- changes when interest rates change
Charge Accounts
Buy goods and services at individual stores and ______
Credit limit – the ______amount a person can buy with the ______of payment.
Types of Charge Accounts
1. Installment Account
Repaid with ______over a certain period of time
Part of the payment goes towards ______and part towards the ______
Ex – car loan or mortgage
2. Regular account
Billing cycles where a bill is sent at the end
______is charged if the ______bill is paid
Account can’t be used again until the balance is paid
Interest is charged on the ______
Ex. Furniture stores usually do this. Pay by 2010, certain amount each month, but with no interest.
3. Revolving Account Billing cycles where a bill is sent at the ______interest charged on portion not paid
Account ______until credit limit is reached
Ex – credit cards
Credit Cards
Make purchases ______having the money
Charge ______interest rates
______interest rates if the customer is ______
______- Cost of credit (interest) expressed in dollars
APR – Cost of credit (interest) expressed as a ______
Applying for Credit
Fill out application
______does a credit check
Creditor may ask for ______
Credit checks show your income, debt and ______to pay debts in the past
Credit Rating
______of risk – Excellent, Good, Average or Poor
Ratings have a number associated with them
3 Credit Bureaus - ______
Gives lenders an idea of ______when issuing loans
Higher credit score = less interest you are charged on a loan = ______
Unsecured loans – loans based on ______
Secured loans – have ______to back up the loan
Government Regulations
______- a person can’t be denied credit because of race, religion, national origin, gender, marital status or age
______- restrict the amount of interest companies, ______, can charge
In North Carolina, it is 8%. If you lend a neighbor $100, you can only receive $8 in interest.
Bankruptcy
Debts are so large they ______
Most of what a debtor owns is ______or given to ______
Takes ______to reestablish credit
States can become bankrupt too
Consumer Rights
Consumer – someone who buys a product or service – YOU!
Types of income
Disposable Income - ______
Money to pay for house, car, utilities
______Income – money remaining ______paying for necessities
Either save or spend it
______- movement to educate buyers on purchases and to make sure products are safe
Congress laws – Pure Food and Drug Act in 1906
______- Better Business Bureau (BBB)
Consumer Bill of Rights
Consumers have ...
Right to a ______
Right to be ______
Right to ______
Right to be ______
Right to ______
Consumer Responsibilities
Smart Buying Strategies
Info on products
Watch out for advertising
______- find out prices on products from different stores/internet
Ex. Brand Name vs. Generic
When product fails
Report it
Check the ______
Keep a copy of ______
Be calm
Make Fair complaints
Labor Unions
Organized Labor
______are groups of workers who band together to have a better chance to obtain higher pay and better working conditions.
Out of the ______in the civilian labor force, only ______of Americna workers belong to a union.
That number has been falling since the 1980’s as we have transformed our economy from ______to a ______economy.
The First Unions
Development
______
______working conditions
Workers fired for no reason
Workers ______
Knights of Labor
______union founded in 1869
Organized ______laborers
______
1886 peak of membership at 700,000
Ended in 1900
______(AFL) Organized in 1886
______unskilled workers, women, African Americans and immigrants
Samuel Gompers
Fought for ______, ______hours, and benefits for ______.
By 1900 membership reached 500,000
Organized Labor
There are 2 types of unions
______- workers who perform the same skills
______- bring workers together who belong to the same industry.
Organized labor has a ______level hierarchy
Local unions
______
Federations
______unions are made up of workers in a ______, company or geographic area.
Usually identified with ______.
Negotiates a ______with a company and ______the contract terms.
Represents the ______unions agenda, while at the same time representing the ______of their constituents.
______unions are the individual craft or industrial unions that represent local unions nationwide.
Help employees set up ______and negotiate contracts.
In certain industries, the national union negotiates the contract for the ______industry
At the Federation level is the ______
Represents ______workers nationwide
From 195-2005, represented virtually ______unionized workers in the U.S.
Union Membership Policies
Closed shop –
______- workers must join the union after a specified time
Agency shop – not required to join a union, but ______
______- companies may hire workers regardless of membership
______union shop – workers given an ______to join a union after hiring.
Organized labor
In the past, some labor unions supported ______, when a worker would have to first belong to a union to be hired by the company.
This was banned by the ______of 1947
A common arrangement today is the ______, which allows companies to hire anyone as long as they join the union shortly after they begin working.
One part of the ______banned this practice as well.
_____ states have passed ______laws, which prevent ______union membership required by union shops.
What we see in the ______, are ______union shops, in which workers do not have to join a union, but if they do join they have to remain a member for the ______of their ______.
A majority of workers must vote in favor of a union before one can be formed.
The ______makes sure union votes are carried out honestly.
Collective Bargaining
Process where union ______and ______discuss employment terms.
Compromise is the issue
3 steps
______- labor and management meet ot discuss contract issues
______- a neutral 3rd party hears both sides
Federal Mediation and Conciliation Service provides a mediator
______- 3rd party makes a final decision for a compromise
Negotiations
Once workers choose to be represented by a union, the ______is responsible for carrying out ______.
When union and company ______meet to discuss conditions of employment, such as –
Wages
______
Working ______
grievance procedures
Benefits
Work ______and ______
If the 2 sides cannot agree to the new terms of a contract they may try 2 different methods - ______or ______
Mediation – is when a ______tries to help both sides reach an agreement; ______decision is made but lines of communication are kept open between the 2 parties.
Arbitration – is when a third party ______to both sides arguments and ______on a settlement; has the power of a ______and both sides agree to ______the arbitrators decision
When Collective Bargaining Fails
Worker/Union
Strikes –
______- used to discourage other workers from working
Boycott – refuse to ______goods or services from the company
______- worker ______to work on company terms
Business/management
Lockout
______
Labor-Management Conflict
Many contracts are settled at the ______, but in some cases negotiations can break down
To pressure management to accept their position, ______can call a ______, in which all workers in the union refuse to work
Workers can picket the business, ______, getting people’s attention to the situation.
Sometimes ______products or services can work to get managements attention
Management can use ______- in which the ______workers from entering the workplace until they accept their contract terms.
Businesses hope the loss in income will convince the workers to accept the companies position.
Can as the ______to issue an injunction, a ______from the court preventing some activity (strike)
Ex 1995 MLB season
In severe or extreme labor – management disputes, ______many get involved
Can ______operations of an industry until conflict is settles
Ex. 1946 U.S. seized the ______because of the countries need for this energy source. Operation of the mines continues, until labor and management came to an amicable agreement
Major Events in Union History
1882 1911 1914 1946 1955 1981
1869 1886 1912 1920 1947 1970 2013
Unions Today
Right to work states
______unions from forcing workers to join
Movement of Human Capital
______- the north
______- the south
______and ______moved from the rustbelt to the sunbelt
______was better
Cheaper labor
No existing unions
White collar vs. Blue collar jobs
______- upper management
Lots of new on white collar crime in big business. Ex – Enron, Merrill Lynch
Blue collar - ______, usually doing ______labor
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