Chapter 12

Types Money and

Banks,
Commercial Banking &
Internet Banking
Dosen : Taufik Hidayat
 Money

• What is Money

• Please watch this Video

• Money
• How money is created
 Forms of Money

1. Money in coins and banknotes is called a) Credit

2. The dollar, the euro and the yen are all
b) Mortgage
3. Money placed in banks and other saving
institutions constitute c) Debt
4. Money available in the banking system for d) income
individuals and businesses to borrow is
5. Money borrowed from a bank is a
e) Cash
6. Money borrowed from a bank to buy property or f) Wages
real estate (a house or flat) is
g) overtime
7. Borrowed money that has to be paid back
constitutes a h) Currencies
8. All the money a person receive is known as i) Deposits
9. A fixed amount of money for week’s manual
work is called j) loan
10. Money received for working extra hours is called
 Forms of Money

11. A fixed annual amount of money paid to an employee (in

monthly installments) is a
k) commission
12. Extra money paid to employees for good financial result l) Social security or
is a welfare
13. Money paid to salespeople and agents depending on the
amount of goods sold is m) capital
14. Money paid to lawyers, architects, auditors, etc. for
professional services is called n) fund
15. Money paid by government to unemployed and sick o) pension
person is called
16. Money paid by government or a former employer to a p) rent
retired person is a
q) bonus
17. The money that eventually be used to pay pension is
kept in r) budget
18. The money needed to start a company is called
19. Estimated expenditures and income is often written
s) fees
down in t) salary
20. Money paid for the use of a house or flat is
 Forms of Money

• British English • American English

• Flat • Apartment
• Note or banknote • Bill
• Property • Real estate
• Social security • Welfare
 Video

• Please watch this video

• Banks & Financial Institutions

 Banks &Financial Institutions

• What Is a Financial Institution (FI)?

• A financial institution (FI) is a company engaged in
the business of dealing with financial and monetary
transactions such as deposits, loans, investments,
and currency exchange.
• Financial institutions encompass a broad range of
business operations within the financial services
sector including banks, trust companies, insurance
companies, brokerage firms, and investment dealers.
• Virtually everyone living in a developed economy has
an ongoing or at least periodic need for the services
of financial institutions.
Banks &Financial Institutions

• Private banks • receive and hold customers’ deposits in current and saving
accounts, pay money according to customers’ instructions,
• Clearing lend money to individuals and businesses etc.
banks • give financial advice to large companies, raise capital for
• Commercial them by issuing stock, or share and bond, organize merger
and takeover, etc.
banks • receive customers’ deposits and lend mortgages to buy
• Building homes (houses and flats)
societies • supervise the banking systems, hold parts of commercial
banks’ reserves, manage a country’s gold and foreign
• Central currency reserves, implement monetary policy, issue coins
banks and banknotes, and act as lender of the last resort.
• Investment • manage assets of rich people
banks • pass cheques and other payments (credit cards, direct
debits etc.) through the banking system.
Banks &Financial Institutions

• Microfinance • do not pay interest to depositors and charge interest to

borrower for religious reasons, but invest in companies and
banks share the company’s profits (or losses) with the bank’s
• Hedge funds depositors.
• provide financial services and make very small loans (micro
• Mutual credits) to poor people in developing countries, to help
Funds or them set up in business.
Investment • provide financial protection against loss, offer life
funds insurance, etc.
• are investment companies that pool money from many
• Insurance investors and invest it at stocks, bonds, and other
companies securities.
• Islamic • Are private investment fund for wealthy investors that use
high-risk, speculative strategies that are not used by
banks ordinary mutual funds, in order to achieve higher returns.
 British Vs American English

Bristih English • American English

•Building Society • Savings and loans society or

Thrift
•Cheque • Check
•Investment Bank • Investment Bank
or Merchant Bank
•Retail Bank,
Commercial Bank • Retail Bank or Commercial
or High Street Bank
Bank
 Commercial Banks

1. accounts • Commercial or retail banks businesses that trade in

2. branches money. They generally have lots of ………in different
3. credit towns and cities. They receive and hold ….., pay
4. current money according to customers’ instruction, and ----
5. deposits money to individual and small businesses.
6. direct • Traditionally, manual and factory workers were paid
debits
their….. in cash at the end of the week, and didn’t
7. lend
have bank …… Professionals and non-manual
8. loan
workers, however, receive a monthly ……., paid by a
9. overdraft bank………
10. reserve
11. risk • A____ or checking account usually pay little or no
12. salary interest, but allows its holder to ____ cash with no
13. Security restrictions. Deposit accounts and saving account pay
14. Transfer
interest, but advance notice is often required to
15. wage
withdraw money.
16. withdraw
 Commercial Banks

1. accounts • Most customers get cash from cash dispensers or ATMs, and
2. branches pay regular bills by ____ or standing orders, and pay irregular
3. credit bills online, so they don’t have to go to their banks. In some
countries, people still pay for goods and services with cheques
4. current
or checks; in other countries credit cards are more common.
5. deposits
6. direct • Bank over loans and overdrafts. A ___is a fixed sum of money
debits lent for a fixed period, on which the borrower pay interest.
Banks usually require some form of____ or guarantee before
7. lend
lending. An ____ is an arrangement by which a customer can
8. loan withdraw more than is in the account, i.e. run up a debt to an
9. overdraft agreed limit; interest on the debt is calculated daily.
10. reserve • The rate banks charge for loans depends on the ____ involved:
11. risk the bigger the chance of the loan of not being repaid, the
12. salary higher the interest rate. Banks are able to create ___, because
13. Security the money lend is usually spent and deposited in other bank
14. Transfer account, from which it can ne lent again. But banks have to
15. wage keep a percentage of their deposits as ____for customers who
want to withdraw cash.
16. withdraw
 British Vs American English

Bristih English • American English

•Cash Dispenser or • ATM

Cash Machine

•Current Account • Checking Account

•Deposit Account • Deposit Account or Notice

Account
 Commercial Banks
Complete the text below by inserting the correct form of
the verbs
• Many commercial banks offer special services for
do entrepreneurs ____ small businesses, such as
advice on writing a business plan, ____ sales and
face costs, ____ and analysing budgets and financial
forecast statements, and ___ SWOT analysis, which looks at
a business’ strengths and weaknesses,
pay opportunities and threats, it ___.
prepare • Commercial banks offer small businesses many
process services that are similar to the ones they ____ for
provide personal customers, such as current and saving
accounts, loans, overdrafts, mortgages, credit
set up cards, internet and telephone banking, and
insurance.
 Commercial Banks

do • Business bank account allows small firms to make

payments and _____ debit and credit card
face payments, and so on. Bank often offer overdraft
forecast facilities and short-term loans to business in case
pay of temporary cash-flow difficulties because of late
____ customers.
prepare
process
provide
set up
Internet Banking
Internet Banking
 video

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Currency War