1.3 Financial Products

• Financial products are tools offered by banks and financial institutions to help individuals manage their money
• Order the main types of financial products:

  1️⃣ Savings Accounts

  2️⃣ Loans

  3️⃣ Mortgages

  4️⃣ Investments
• Match the financial product with its purpose:

  Savings Accounts ↔️ Deposit and earn interest

  Loans ↔️ Borrow funds for repayment

  Mortgages ↔️ Finance real estate purchases

  Investments ↔️ Generate profit from assets
• Understanding different financial products is crucial for making informed financial decisions.


  True
• Understanding financial products is crucial for making informed financial decisions.


  True
• What is the purpose of a loan?

  Borrow funds with repayment
• What is the primary purpose of a mortgage?

  Purchase real estate
• A variable-rate mortgage is a type of mortgage.
• Match the financial product with its purpose:

  Savings Accounts ↔️ Deposit and earn interest

  Loans ↔️ Borrow funds for repayment

  Mortgages ↔️ Finance real estate purchases

  Investments ↔️ Generate profit from assets
• Loans can lead to debt if not managed carefully.
• Match the financial product with its example:

  Loans ↔️ Student loans

  Mortgages ↔️ Fixed-rate mortgage

  Investments ↔️ Mutual funds
• What is the purpose of investments as a financial product?

  Generate profit
• Savings accounts allow you to deposit money and earn interest
• What is the primary goal of investments as a financial product?

  Generate profit
• What is the purpose of loans as a financial product?

  Borrow and repay
• What is one major risk associated with loans?

  Debt accumulation
• Match the financial product with its risk:

  Loans ↔️ High total cost

  Investments ↔️ Market volatility

  Mortgages ↔️ Property depreciation

  Savings Accounts ↔️ Inflation
• What is the primary benefit of savings accounts?

  Earn interest
• What is a major benefit of mortgages?

  Property appreciation
• What is the purpose of a savings account?

  Deposit and earn interest
• Loans provide funds to borrow with an agreement to repay over time.
• Property value can depreciate, which is a risk associated with mortgages.


  True
• What type of loans are mortgages specifically for?

  Real estate
• Understanding the key features of each financial product is crucial for making informed financial decisions
• Savings accounts allow you to deposit money and earn interest
• High total interest paid is a risk associated with mortgages
• What is the main risk associated with savings accounts?

  Low returns
• Match the financial product with its purpose:

  Mortgages ↔️ Purchase real estate

  Loans ↔️ Borrow and repay

  Savings Accounts ↔️ Deposit money and earn interest

  Investments ↔️ Generate returns
• Investments are subject to market volatility
• Match the financial product with its definition:

  Savings Accounts ↔️ Deposit money and earn interest

  Loans ↔️ Borrow funds with repayment agreement

  Mortgages ↔️ Loans for purchasing real estate

  Investments ↔️ Money into assets for profit
• A regular savings account is an example of a savings account.
• A premium savings account is a type of savings account.
• Match the financial product with its example:

  Savings Accounts ↔️ Regular savings account

  Loans ↔️ Personal loans

  Mortgages ↔️ Fixed-rate mortgage

  Investments ↔️ Stocks
• Investments involve putting money into assets like stocks or bonds to generate returns.

  True
• What is the purpose of a loan?

  Borrow funds for repayment
• Understanding financial products is crucial for making informed decisions about managing your money.
• Understanding financial products is crucial for informed money management.


  True
• Match the financial product with its example:

  Savings Accounts ↔️ Premium savings account

  Loans ↔️ Student loans

  Mortgages ↔️ Fixed-rate mortgage

  Investments ↔️ Stocks
• Savings accounts allow you to earn interest over time.

  True
• What type of loans are mortgages specifically for?

  Real estate