View
220
Download
3
Category
Preview:
Citation preview
Make Money from Money
Citizenship: Consumer Economics
About the Unit
• In the Consumer Economics Unit we will be exploring the following questions:
• How do banks and other financial institutions make money?
• What is a public company?
• What are public services?
• What is the purpose of education?
• Why is employment important?
• What effect does income inequality have?
Financial Services
Video
•https://www.youtube.com/watch?v=CqD3hnjZBTM
Historical Examples
• 13th Century (1200’s) - Scholars condemn usury, which is the practicing of making unfair loans to someone.
• 1397 - Medici Family (Italy) founds a bank that operates on the basic principles that modern banks operate under.
• 1873 - British Journalist Walter Bagehot urges the bank of England to act as a “safety net” lender to British Banks.
• 1930 - The Bank of International Settlements is founded in Switzerland and creates international banking rules and regulations.
• 1992 - US Economist Hyman Minsky publishes “The Financial Instability Hypothesis,” which has helped explain the 2007-08 financial crisis caused by bank failures.
Summary
•Banks and other financial institutions fund their operations by paying people interest to borrow their money and make a profit by collecting fees and interest to lend people money.
Recommended