banks and loans
TRANSCRIPT
![Page 1: Banks and loans](https://reader034.vdocuments.net/reader034/viewer/2022042512/55c1a653bb61ebd6268b45d7/html5/thumbnails/1.jpg)
BANKS AND LOANSMr. Geib and Mr. Fitz-Patrick
12th Grade Economics
![Page 2: Banks and loans](https://reader034.vdocuments.net/reader034/viewer/2022042512/55c1a653bb61ebd6268b45d7/html5/thumbnails/2.jpg)
ARE BANKERS YOUR FRIENDS?!?
![Page 3: Banks and loans](https://reader034.vdocuments.net/reader034/viewer/2022042512/55c1a653bb61ebd6268b45d7/html5/thumbnails/3.jpg)
INTEREST RATES AND CREDIT• Paying all cash!• Credit scores
• Good credit• Medium credit• Bad credit
• Late payments, defaults; bankruptcy
• Term of loan • Interest rate• Prime lending rate• Amortization schedule
Auto rate calculator
This is an example of a deal made for someone with bad credit: a $16,000 Nissan Versa, minus a $1,000 bonus
cash incentive, financed for 72 months with $1,000 down. The interest rate
would be around 17.9 percent, which would bring the monthly payment to
about $354. At the end of the six years, you would have paid $25,485
for that Versa.
![Page 4: Banks and loans](https://reader034.vdocuments.net/reader034/viewer/2022042512/55c1a653bb61ebd6268b45d7/html5/thumbnails/4.jpg)
PAYDAY LOAN SERVICES• Almost 30% is the CA
limit on auto loan interest rates!
• Ethical?
• Payday loan services?
![Page 5: Banks and loans](https://reader034.vdocuments.net/reader034/viewer/2022042512/55c1a653bb61ebd6268b45d7/html5/thumbnails/5.jpg)
“USURY”?Banks and banking are central to “capitalism” and the accruing of money towards investment and economic growth. But ethical reservation revolving around the lending of money are ancient!
![Page 6: Banks and loans](https://reader034.vdocuments.net/reader034/viewer/2022042512/55c1a653bb61ebd6268b45d7/html5/thumbnails/6.jpg)
CREDIT CARDS• “Credit Card” versus
“Debit card.”• Credit Cards• American Express
– Visa, Mastercard, and Discover
– Interest Rates, Rewards
• College students and credit cards?
• Middle Class safety net?• National credit card
debt?
![Page 7: Banks and loans](https://reader034.vdocuments.net/reader034/viewer/2022042512/55c1a653bb61ebd6268b45d7/html5/thumbnails/7.jpg)
MODERN AMERICWANTS YOU TO BE IN DEBT!
• There used to a be a strong moral prohibition on debt – NO MORE!
• The idea of being a “WAGE SLAVE”!