2.00 part 2

The application of computers in financial institutions, the rapid diversification of customer financial services, and the expansion of facilities have brought enormous changes to the financial industry. These changes have resulted in a:

• general decline in the number of employees who are willing to work in a bank today.
• work environment that lacks the need for training and commitment to customer service.
• general upgrading of banking jobs, calling for people with technical skills, broadened cultural backgrounds, and a customer-oriented philosophy.
• wide variety of employees being trained to handle single responsibilities instead of being cross-trained to work throughout the entire financial institution.

With a lending investment, investors:

• avoid taking any risk.
• hire a financial advisor.
• allow borrowers to use their money for a price.
• maintain a minimum amount of money in the investment.

Which is an advantage of investing in bonds?

• They are very low risk.
• They are insured by the FDIC.
• They offer extremely high rates of return.
• They permit people to access their money at any time.

Which are often considered one of the safest investments?

• commodities
• penny stocks
• precious metals
• government bonds

A type of market in which each transaction takes place at predetermined time intervals is referred to as a:

• call market.
• bond market.
• financial market.
• continuous market.

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.

With an ownership investment, investors:

• buy a home to live in.
• collect popular items.
• invest in multiple corporations.
• pay for the right to own something.

Which type of financial market sells new stock or bond issues to investors?

• primary capital
• soft commodities
• secondary capital
• hard commodities

In the banking industry, which professionals advise borrowers on credit options and payment methods?

• bank tellers
• loan officers
• bookkeepers
• bank managers

A type of market that allows traders to trade any time the market is open is known as a:

• call market.
• bond market.
• financial market.
• continuous market.