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Good morning my name is Lucia Klincova and I prepare presentation about Banking and Finances.

Money are everywhere around us and they are very important in our lives. Thanks to money we can
buy almost everything except love, true friends or happines. Because more over money doesnt
matter you happiness. You can be rich and unhappy at the same time.

It is very hard to earn but very easy to spend. How many money we have is different in every part of
the world and in every family. Because if someone has good family background is isier to gain a good
education and then a good work position. But if someone has poor family background it means if
someone is born to poor family is very hard to gain a good education. There people then must work
very hard if they want live better that their parents. However some people do not want work hard
but they want to be rich so they start to earn money in an illegal way. It means that they start to
blackmail, kidnap, rob, fraud, forge or trafick. But there are also legal ways how to be rich. For
example to inharite money or real estate, win in lotery or own hard work.

Nowadays we live in consumer society which is typical for the excessive production of short-lived or
disposable items. This type of society often produces shopaholics, people who are addicte to
shopping. They buying things who they dont need.

Credit crunch is an economic situation when banks are reluctant to lend funds corporation and
interest rates are high. For example in 2008 colapse of Lehman Brothers a global financial services
firm started an economic and financial crisis that swept across the globe.

If someone want to borrow money or save money he go to to the bank. Banks provide differrent
financial services for people. For example issue banknotes, process payments, lend and exchange
money and provide safe deposit boxes. Banks operated on capital markets. Nowadays most people
have a current acount in a bank. It has a lot of advantages for example their earnings are regularly
transfered into this account, they can pay for goods and services by credit card not just in cash. Some
people pay by cheque but in slovakia this way of payment is less common. if we need a money in
cash but they are on an account we must withdraw it. People usually do this from a cash machine
using a bank card. Then the cash machine display the balance of the account. If you overdraw your
account you have to pay interest. When the account is overdrawn you are in the red and if the
account isnt owerdrawn you are in the black or in credit. With account you can also pay your bills. If
you pay for something every month you can ask for standing order. The bank sends us a regular
account statement telling us how much money we have. If we want to save some extra money we
may also have a saving account. If we need to borrow money the bank may give us a loan, but it isnt
free, because then we mus pay interest to a loan. If we building a house and the bank give us a loan it
called a morgage.

A central bank is a banking institution that has the exclusive privilege to lend a government its
currency. Form example the eure is managed and administred by the Europen Central Bank which
sets monetary policy.

In the world are many different currencies. And sometimes is hard doing bussines with foreign clients
if we dont know hwr the foreing exchance rare is between our and their currency. This problem we
normally handle with internet where we can look up exchange rates. Is very usefull when countries
adopting the common currency. For example we are adopting euro a european common currency in
2009. But if country want have euro its complicated because this country must to meet a certain
criteria. the criteria to meet include a set inflation level, domestic debt level and maximum annual
public budget defficit.
In the world are still most popular new payment technologies, but it the the UK and the USA are still
popular cheques. However some banks agrue that cheques are more open to fraud. for that many of
major UK supermarket chains have stopped accepting cheques. So in this suppermarkets people
must pay with cash or debit cards. Almost everyone use online bank transfers to pay their bills. If we
pay for gas or telephone we can pay it by standing order or direct debbit. Different between this two
ways of paymant is that standing order pay the same amount each time, whereas the amount for
direct debbit is different each time.

The state gets their money through taxes which they collect from the citizens by different taxes such
as income tax or valie added tax.
We pay income tax on wages and salaries. A salary and a wage are a payments paid by the employer
to the employee for work. Different between these two is that salary is payd for regular work on
a regular basis and wage is usually payd by the week or day for work which are most irregular. On tax
return is declared about all your income from salaries and wages.
Value added tax or VAT is tax paid on most goods and services when they are bought.
Some people receive money from the state for exapme the unemployed receive unemployment
benefit , disabled receive disability allowance and mothers on maternity leave get maternity

Thats all. I thank you for attention.