#1 Types of economic systems
Traditional: Countries where people are living off the land (poor countries)
Command: Like a communist government (government controls everything)
Market: Democratic (individuals get to decide)
Mixed: The individual owns resources but government sets laws (taxes, safety rules, making things illegal, ext)
#2 Types of banks
Commercial Bank: a bank only for business
Mutual savings banks: Charted by state, made because people in suburbs did not have banks
Savings and loan: bank for regular consumer
Credit unions: Provide small banking functions for you
Internet banks: only online banks
#3 Types of endorsements
Blank: Only has your signature
Special: Says pay to the order of... so you can write the check for anyone and has your signature
Restrictive: Says for deposit only, account number and the signature
#4 How to profit on stocks
capital gain- Buying low and selling high.
Company dividend- The money the company pays you for investing in it.
#5 The three c of credit
Capital- The things you own; car, furniture, ect
Character- Your willingness to repay your loan; plus how long you lived where you live, if you pay your bills on time, ect.
Capacity- Ability to repay your lown; your income, how much dept you have, ect.