Personal FInance: Investments and Financial Institutions

A non profit financial cooperative owned by and operated for the benefit of its members; services offered only to its members:

• Credit Union

• Commercial Bank

• Stock Broker

• Payday Lender

Choose two answers.

Jeff wants to open a basic savings account. He should go to which two types of financial institutions to open the account.

• a payday lender

• a commercial bank

• an insurance company

• a title pawn

• a credit union

Which financial institutions offers checking accounts?

• payday lender

• commercial bank

• title pawn

• credit union

Short‐term loan that provides immediate cash by securing a borrower’s written check or receiving authorization for automatic withdrawal from the borrower’s depository institution account.

• Title loan
• Payday loan
• Refund anticipation loan
• Pawn loan

The borrower gives the lender his/her automobile title in exchange for a set amount of cash. 

• Title Loan
• Payday Loan
• Refund Anticipation
• Rent to Own 

Savings accounts and money-market accounts are most appropriate for:

• Long-term investments like retirement
• Earning a high rate of return
• Emergency funds and short-term goals
• Savings accounts and money-market accounts should be avoided since they carry high risk

The relationship between Risk & Return can be stated as

• Higher Risk / Lower Return

• Higher Risk / Higher Return

• Lower Risk / Higher Return

• No relationship exists between Risk and Return

What are mutual funds?

• To sell stocks to the government in return for tax breaks

• Pool money together from investors so investors can pay debts to companies

• Pools money together from investors so those investors can buy investments

• An offshore account used to transfer money from illegal activity

Investment that provides fixed interest payments for a set period of time

• savings account

• stock

• bond

• mutual fund

A type of savings that signifies that you own a part of a corporation and a claim to their assets and earnings.

• Stock

• Share

• Dividend

• none is correct