Banking matters Activity A. Current accounts

Activity 2.Answer the following questions.

1. 
   What is a bank? A bank is a financial institution that acts as a payment agent for customers, and borrows and lends money
   
2. 
   What are the main economic functions of banks? issue of money, netting and settlement of payments, credit quality improvement and maturity transformation.
   

Unit: Types of banks

1 central banks 5 merchant banks

2 commercial banks 6 investment banks
3 universal banks 7 building societies
4 finance house 8 supranational bank

Unit: Banking products and services
Activity 1.
A new customer would like to meet with you about doing business with your bank. Use the practice below to help you prepare a talk about your bank’s products and services.
A. Your bank features basic accounts for customers. Write 1-2 characteristics for each type of account.

• 
  current account----A current account is an account which allows customers to take out or withdraw money, with no restrictions. Money in the account does not usually earn a high rate of interest: the bank does not pay much for 'borrowing' your money
  
• 
  deposit account -- which pays more interest but has restrictions on when you can withdraw your money
  

money market account - A money market account is an interest-bearing account at a bank or credit union. Most money market accounts pay a higher interest rate than regular passbook savings accounts and often include checkwriting and debit card privileges

B. Choose the right word from the list to complete each sentence.
a. loans
b. overdraft facility
c. bonds
d. pension
e. standing order

C. Make word partnerships to name typical banking products and services. The words can be used more than once.