商务知识导读课件董晓波 ISBN9787566309365 PPTUnit 9 Economic Crisis.ppt

Unit 9 Economic Crisis Text Notes Words Expressions Exercises Supplementary Reading Tips Text A The Great Depression Notes: Words Expressions: Exercises: Supplementary Reading: Tips: Thank you! CONTINUE TO INVEST IN THE 401(k) Continue to put money into your 401(k). Low share prices mean you can buy more. If you know you are going to need the money, move it into a money market fund, where its not going to rise or drop too much. GET OUT OF DEBT Stop charging. People spend 20 percent less when they use cash or a debit card. Call the card issuers and see if they will negotiate a lower interest rate. On existing balances, make sure you pay at least the minimum, on time and dont miss a payment or go over the credit limit, thus incurring more fees. In todays environment, it may be hard to shop around for a lower interest credit card. Make sure you read the fine print; switching to a lower-interest card often carries transfer fees and once you are approved, the credit line may not absorb all of the debt you are transferring. CONSIDER A PART-TIME JOB Dedicate all money from the part-time job to paying down debt. As burdensome as that sounds, consumers find that the freedom from knowing they are becoming debt free is greater than the burden of second job. KEEP WORKING Rethink whether you need to retire right now. Being able to earn a living is a huge asset. Types of Financial Crisis 1. Banking crisis When a bank suffers a sudden rush of withdrawals by depositors, this is called a bank run. Since banks lend out most of the cash they receive in deposits, it is difficult for them to quickly pay back all deposits if these are suddenly demanded, so a run may leave the bank in bankruptcy, causing many depositors to lose their savings unless they are covered by deposit insurance. A situation in which bank runs are widespread is called a systemic banking crisis or just a banking panic. A situation without widespread bank runs, but in which banks are reluctant to lend, bec