Personal Banking 1

What is the primary way a commercial bank makes money?

• By charging fees
• By selling stocks
• By loaning money
• By providing investment services
• By managing credit cards

What distinguishes a savings and loan association from a commercial bank?

• It is owned by depositors
• It offers credit cards
• It focuses on business loans
• It is a nonprofit institution
• It provides investment banking services

What is a unique feature of a credit union compared to commercial banks?

• It is for-profit
• It is owned by a corporation
• It serves a specific group of people
• It offers only home loans
• It handles IPOs

What is the primary business of an investment bank?

• Taking deposits
• Lending money
• Offering savings accounts
• Raising capital through stock offerings
• Providing home loans

Which banking institution is described as nonprofit?

• Commercial banks
• Savings and loan associations
• Credit unions
• Investment banks
• None of the above

What does an investment bank do in an initial public offering (IPO)?

• Accept deposits from the public
• Loan money to businesses
• Purchase and guarantee stock sales
• Provide savings accounts
• Finance home purchases

Who typically benefits from the services provided by credit unions?

• The general public
• Specific groups of people like teachers or employees
• Government agencies
• Corporate clients
• Shareholders