Econ review unit 4

Money serves which of the following 3 functions?

• Medium of exchange

• Standard of value/Formation of account

• Store of value

• Way to flex

Money must be accepted as payment for goods and services in order to be a what?

• Medium of exchange

• House

• Weapon

• Medium of payment

True or false: your house is more liquid than your savings account

• True

• False

Which of the following are lenders?

• Banks

• Credit unions

• Payday lenders

• Title pawn lenders

What is this describing? Accept deposits, make loans and provide a wide array of other financial services-> provide a safe place to save and borrow at reasonable rates. Usually charge slightly lower interest for loans and pay slightly higher interest for savings accounts...

• Credit unions

• Banks

• Payday lenders

• Payday loans

Safest and least expensive to borrow...

• Banks

• Credit unions

• Payday lenders

• Payday loans

Have no banks accounts, have bad credit/FICO,are in desperate financial circumstances (can't absorb a shock), and have no other recourse in obtaining a small amount of cash. What should a person that fits these characteristics choose?

• Bank

• Credit card

• Payday loan

• Title pawn loan

Cash advance loans or check advance loans

• Payday loans

• Title pawn loans

• Bank

• Credit unions

The average term length for a payday loan is. . .

• two weeks

• one month
• three days
• six months

Credit unions usually charge slightly higher interest for loans and pay slightly lower interest for savings accounts.

• True

• False