Investment Options/Financial Institutions

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

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

Who owns a credit union?

• its members

• investment bankers

• the government

• commercial banks

Which financial institution is owned by its members?

• financial service company

• savings and loan association

• commercial bank

• credit union

Which two features does a CD (certificate of deposit) have?

• allows money

  transfers

• offers a higher

  interest rate

• allows ATM

  withdrawals

• has a maturity date

Which would be the best retirement savings option for a 40-year old engineer whose employer offers a five percent contribution match?

• IRA

• 401(k)

• basic savings account

• money market account

Great for emergency funds due to their liquidity and stability

• Savings Accounts

• CD's - Certificate of Deposits

• Retirement Account

• Brokerage Account