Please enable JavaScript.
Coggle requires JavaScript to display documents.
SMM final exam summary ver2.0, Unit7, Unit 8 - Coggle Diagram
SMM final exam summary ver2.0
Financial institutions
Commercial banks, credit unions, savings
banks, etc.
Non deposit-type financial institutions
mutual fund companies, brokerage firms, insurancce companies offer similar services as those offered by banks
Stockbrokerage Firms
Mutual Funds
“Banks” or Deposit-type financial
institutions
Financial institutions that provide
traditional checking and savings accounts
Commercial Banks
Savings Banks
Credit Unions
Savings and Loan Associations (S&Ls or "thrifts")
Credit rating
Affects
Rates you pay on credit cards
Size of credit line
Insurance rates
Mortgage rate
Strong credit score-lower interest rate
Amounts owed
Credit History Length
Payment history
Credit mix
New credit
CCRIS
Stands for Central Credit Reference Information System.
facilitate credit risk
management among banks
How it was calculated?
Amount Owed
Credit history
Credit Mix
Payment Behaviour
New loans
5 C's of credit
Capital
Character
Capacity
Collateral
Conditions
Credit card (shop online)
Advantages of online and mobile banking
Personal financial management support
Convenience: view and track accounts, pay bills, view up-to-the-minute credit card activity anytime, from anywhere.
Efficiency: Can access and manage all of the bank accounts, including savings, CDs, and securities, from one secure site and transfer funds between checking and saving accounts/anothe customer's account.
Effectiveness: Many online and mobile banking sites provide stock quotes, rate alerts, and personal financial management support.
Disadvantages
Start-up time: It takes time and some effort to register for your bank's online and mobile program. If you are setting up an account together with a spouse, you may have to sign a durable power of attorney before the bank will display all of your holdings toggether.
Adapting to online and mobile banking: Banking sites can be difficult to navigate at first, so expect to spend some time working through the tutorial. These priodically change, which may require reentering data.
Feeling comfortable: Many people just don't feek comfortable banking online.
Customer service: The potential for poor customer service is a downside to online and mobile banking
Renting vs buying house
Renting
Avoids the risk of
falling housing prices
No grounds keeping, home repair and maintanance
May involve a
lower monthly cash flow
No property taxes
No down payment
required
immune to losses due to housing price depreciation
Mobility:
can relocate without incurring real estate selling costs
Buying
Possibility of
property's appreciation
Allows to build up
equity
over time
Allows for a good deal of
personal freedom
to remodel, landscape, and redecorate to suit your taste
Significant tax advantages, including deduction of interest and property taxes
No chance of rent rising over time
Your home is a potential source of cash in the form of
home equity loans
House selling
A good realtor sells at least 30 homes per year
Make sure that there is an
"out clause"
in the contract
Allows you to terminate the contact whenever you want
Look for a realtor that works full-time and has at least 3 years' experience.
Pick a realtor who works and lives in your area
Unit7
Unit 8