Question: Banking Explained - Money and Credit https://www.youtube.com/watch?v=fTTGALaRZoc What is the relationship between people who save money in banks and people who borrow money from banks?

Banking Explained - Money and Credit

https://www.youtube.com/watch?v=fTTGALaRZoc

What is the relationship between people who save money in banks and people who borrow money from banks?
How does the bank make a profit

Perhaps you've casually lent or borrowed money from a friend before. But more formal loan arrangements from a financial institution come with far more terms you must understand in order to get a fair deal.

Loan Basics

https://youtu.be/RIPaZuKHE8I

1.Define principal, interest, & term.

2.What are the main advantages of a secured and unsecured loan?

3.List two examples of items that could be used as collateral for a secured loan.

4.What factors determine the interest rate that will be charged for money borrowed when using credit?

5.What is a cosigner and what considerations should they make before co-signing a loan?

6.What is a danger of taking a variable rate loan?

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