FCS 340 Exam 2 Questions and Answers |
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• When you select a financial services provider, what are major factors to consider?
-✓✓Convenience; Service; Interest rates (borrowing); Fees
• What type of financial services does a credit card company provide -✓✓Short-
term lending
• What type of financial services does a investment company provide -✓✓Mutual
funds, money market funds
• What type of financial services does a life insurance company provide -✓✓Life
Insurance, savings and investments
• What type of financial services does a mortgage company provide -✓✓Loan for
house
• What type of financial services does a payday loan company provide -✓✓Cash
advancements with high interest rates
• Which of the financial services listed in Question 3 will likely provide the most
expensive access to funds? -✓✓Payday Loans
• What type of institution is most likely to provide a full range of financial
services, including checking, savings, and lending? -✓✓Commercial Bank
, • Ed needed some cash quickly, so he received a short-term loan based on the value
of an old ring. Where did he go? -✓✓Pawnshop
• What would be considered a drawback of a savings account? -✓✓Low returns;
Withdrawal Limitations; Missed Opportunities
• A certificate of deposit that has different interest levels based on the stock market
performance is called a -✓✓Stock Indexed CD
• A savings plan requiring that a certain amount be left on deposit for a stated time
period to earn a specified interest rate -✓✓A certificate of deposit
• usually earns interest only if the account stays above the required amount -✓✓An
interest-earning checking account
• A savings account offered by banks, savings and loan associations, and credit
unions that requires a minimum balance and has earnings based on market interest
rate. -✓✓A money market account
• A mutual fund that invests in short-term debt securities, such as commercial
paper, banker's acceptance, repurchase agreements, T-bills, and negotiable CDs. -
✓✓A money market fund
• Previously called a passbook, or statement accounts, usually involves a low or
minimum balance and allows you to withdraw money as needed. -✓✓A regular
savings account
• Earnings on savings can be measured by the __________ -✓✓Rate of Return
Full Test Bank with Verified Solutions |
A+ Pass Guaranteed
• When you select a financial services provider, what are major factors to consider?
-✓✓Convenience; Service; Interest rates (borrowing); Fees
• What type of financial services does a credit card company provide -✓✓Short-
term lending
• What type of financial services does a investment company provide -✓✓Mutual
funds, money market funds
• What type of financial services does a life insurance company provide -✓✓Life
Insurance, savings and investments
• What type of financial services does a mortgage company provide -✓✓Loan for
house
• What type of financial services does a payday loan company provide -✓✓Cash
advancements with high interest rates
• Which of the financial services listed in Question 3 will likely provide the most
expensive access to funds? -✓✓Payday Loans
• What type of institution is most likely to provide a full range of financial
services, including checking, savings, and lending? -✓✓Commercial Bank
, • Ed needed some cash quickly, so he received a short-term loan based on the value
of an old ring. Where did he go? -✓✓Pawnshop
• What would be considered a drawback of a savings account? -✓✓Low returns;
Withdrawal Limitations; Missed Opportunities
• A certificate of deposit that has different interest levels based on the stock market
performance is called a -✓✓Stock Indexed CD
• A savings plan requiring that a certain amount be left on deposit for a stated time
period to earn a specified interest rate -✓✓A certificate of deposit
• usually earns interest only if the account stays above the required amount -✓✓An
interest-earning checking account
• A savings account offered by banks, savings and loan associations, and credit
unions that requires a minimum balance and has earnings based on market interest
rate. -✓✓A money market account
• A mutual fund that invests in short-term debt securities, such as commercial
paper, banker's acceptance, repurchase agreements, T-bills, and negotiable CDs. -
✓✓A money market fund
• Previously called a passbook, or statement accounts, usually involves a low or
minimum balance and allows you to withdraw money as needed. -✓✓A regular
savings account
• Earnings on savings can be measured by the __________ -✓✓Rate of Return
