Banking and Finance questions and answers

Banking and Finance questions and
answers

"Credit union" - ANS ✔✔1. This financial institution was formed by military personnel to meet
their financial needs. What type of institution is this?



"Life" - ANS ✔✔What type of insurance policy pays for funeral and burial costs?



"ATM card" - ANS ✔✔3. Valerie has a plastic card that she can only use to withdraw money
directly from her checking account. She cannot use this card to make purchases. What is she
using?



The Federal Reserve System" - ANS ✔✔4. What entity implements policies concerning the
availability of money and its cost?



"A selection of varied stocks and bonds" - ANS ✔✔5. What is an investment portfolio?



"Business" - ANS ✔✔6. Rick has a great idea about a new product to sell. He needs money to
get started building his brand. What type of loan does he need?



"Annuity" - ANS ✔✔7. What type of insurance policy allows the buyer to pay a set amount
monthly to gain a steady stream of income?



"A fee paid to use someone else's money" - ANS ✔✔8. What is interest?



"True" - ANS ✔✔9. Having insurance minimizes the risk of losing money due to unforeseeable
events.