1. What about financial institutions and markets?

How do you interact with financial institutions and financial markets?

You might wonder how financial markets (and the financial institutions that exist within these markets) affect your life. Think about all the different aspects of your life that involve money, banks, and securities, or borrowing, saving, and investing in some form.

Use the following scale to complete the survey that evaluates potential financial concerns you might encounter as a student. (Note: There are no wrong answers. Add up the numbers after you answer the questions to determine the manner in which your personal relationship with finance might affect you. This exercise is intended to help you determine how you will connect, relate, and apply the concepts in this chapter to your daily life.)

1. Ive never thought about it.2. I rarely think about it.3. I think about it, but I am not sure what to do next.4. I think about this stuff pretty often, and I am curious to learn the answers.5. I think about this stuff all the time, and I want to know more about how financial markets and institutions function.

Have I ever thought about...

a. Ive just accepted a job that pays $40,000 per year. I prefer to use public transportation for a year or two to save money for a new car, rather than purchase a new car now. b. It doesn't matter where I open a checking account or credit card, because there arent significant operational differences between my college's credit union, the savings association downtown, or the mutual fund I saw advertised online. c. I need to purchase a plane ticket for an emergency trip. Should I borrow money from a friend or family member, or use my new credit card? Who best knows my credit history? Who provides the most flexibility when repaying the loan? d. Id like to spend more than my paycheck alone would allow, so Ill have to participate in the financial markets.