Financial Planning I Unit 2.02/03/04

Marcus wants to invest a portion of his money in long-term securities to finance his son's college education and his own retirement. To help him make the best investment decisions, Marcus should obtain the services of a:

• loan officer

• Licensed tax accountant

• certified financial Planner

• credit-union representative

Chris wants to open a small business, and he has a very good business plan that is likely to succeed. Where would Chris be most likely to go to apply for a loan?

• local bank

• national bank

• insurance provider

• mortgage company

Individuals are most likely to require the services of a mortgage company when they want to:

• purchase real estate

• earn interest on savings

• acquire liability insurance

• Invest in the stock market

Patrick wants to keep a certain amount of his money in a safe place in which he can earn interest on his savings, and also be able to withdraw his funds without experiencing sizable financial penalties. In what type of financial institution should Patrick consider placing his money?

• a retail bank

• the stock market

• a retirement fund

• a holding company

Brian recently got his first part-time job as a food bagger at a local grocery store. He needs a safe place to store his income that allows him to withdraw money easily and frequently. Brian should consider opening which type of account?

• savings

• checking

• health savings

• individual retirement

What type of service does a bank provide to a business that needs to borrow funds for a short period of time?

• mortgage

• line of credit

• installment loan

• certificate of deposit

Proofing, encoding, capturing, and sorting are all steps in which banking process?

• check payment

• consumer lending

• cash management

• commercial lending

The direction of a client's cash and securities by a financial services company, usually an investment bank, or an individual is known as:

• a lock box

• a vendor lease

• private placement

• asset management

What type of service might a bank provide a business that needs the flexibility to borrow different amounts of money at different times without having to reapply?

• mortgage

• line of credit

• installment loan

• certificate of deposit

A service that a bank provides to a company for the receipt of customers' payments, which are directed to a special post office box instead of directly to the company, is referred to as a/an:

• lockbox

• vendor lease

• private placement

• asset management