4. Banks and banking
Banks
central
The Federal Reserve – The Fed
institution with independent regulation over money supply in a country
fiat monetary system
independent
listen to the need of government but can refuse printing money
a mint – place where the money is printed
retail
“traditional” banks
have a license to give services to average people in the streets
mBank, Santander, itp
they make money by:
lending money – cars, holidays, houses – with interest (%)
investing – keep 10% of all the money deposited in them
bank run – everybody panics and wants to get money out of the bank, and the banks collapse
investment
specialises in lending money to corporations
HSBC, JPMorgan Chase & Co., Rothschild & Co
they control the world in reality
Words
rachunek bieżący – current account – where you store money, use it online
rachunek oszczędnościowy – savings account
karta kredytowa – credit card
karta debetowa – debit card
bankomat – ATM, cash machine
kasjer bankowy / kasjerka bankowa – teller
debet / przekroczenie stanu konta – overdraft
rachunek wspólny – joint account
stopa procentowa – interest rate
pożyczka / kredyt – a loan or mortgage