Practice #2 - Financial Institutions and Currency

Payment made for the use of borrowed money is called

• Financial Institution
• Creditors
• Interest
• Secured

Who pays interest on a loan

• a lender
•  a borrower
• a credit union
• a creditor

Banks provide which of the following EXCEPT

• debit cards

• loans

• check writing services

• government subsidies

A credit union...

• is a financial institution that focuses on taking deposits and using them to fund mortgages.
• is a non-profit institution owned by its members and provides financial services to its members.
• offers a broad range of deposit account and gives loans to individuals and businesses. 
• is a financial institution for students only

Piece of ownership in a company, mutual fund or other investment

• Share/stock

• 401K

• Bond

Persons or institutions to whom money is owed

• Financial Institutions
• Interest
• Creditors
• Collateral

Money added into a bank account.

• withdraw

• deposit

• cash

• cheque

Commercial banks earn money in all of the following ways EXCEPT:

• Investing in other companies

• Charging fees for their services

• Collecting interest on loans

• Taking a percentage off of all deposits

Which financial institution offer loans such as mortgages and auto loans?

• commercial banks
• credit unions
• savings and loans
• all of them

The most common type of bank accounts

• CD's and DDA's
• Mutual Funds
• Money market accounts
• Savings & Checking accounts