Role of Financial Institutions (1)
Chris wants to open a small business, and he has a very good business plan that is likely to succeed. Where would Chris be most likely to go to apply for a loan?
Local Bank
The direction of a client's cash and securities by a financial services company, usually an investment bank, or an individual is known as:
Asset Management
Ownership investments are ideal for investors who are:
Risk-Tolerant
One of the biggest risks to a real estate investment is:
Depreciation
Which is an advantage of investing in bonds?
They are very low risk
Marcus wants to invest a portion of his money in long-term securities to finance his son's college education and his own retirement. To help him make the best investment decisions, Marcus should obtain the services of a:
Certified Financial Planner
What type of service does a bank provide to a business that needs to borrow funds for a short period of time?
Which is an advantage of a money market account over a savings account?
You can write checks from a money market account.
Which is an example of a lending investment?
Bonds
Successful bank managers and supervisors typically began their employment as:
Tellers
Individuals are most likely to require the services of a mortgage company when they want to:
Purchase Real Estate
Proofing, encoding, capturing, and sorting are all steps in which banking process?
Check Payment
The purpose of the risk pyramid is to show a comparison of:
One investment to another
In investing, legal lending or owning agreements between individuals, businesses, or governments are known as:
Securities
In the banking industry, which professionals advise borrowers on credit options and payment methods?
Loan Officers
Patrick wants to keep a certain amount of his money in a safe place in which he can earn interest on his savings, and also be able to withdraw his funds without experiencing sizable financial penalties. In what type of financial institution should Patrick consider placing his money?
Retail Bank
What type of service might a bank provide a business that needs the flexibility to borrow different amounts of money at different times without having to reapply?
Line of Credit
Which statement is true about certificates of deposit?
One must pay a penalty for early withdrawal
With a lending investment, investors:
Allow borrows to use their money for a price
In the banking industry, a compliance officer is responsible for:
Ensuring all ethical and regulatory standards are met
Brian recently got his first part-time job as a food bagger at a local grocery store. He needs a safe place to store his income that allows him to withdraw money easily and frequently. Brian should consider opening which type of account?
Checking
Investors take a risk for the potential of receiving a:
Return
A disadvantage of owning stocks is the:
High degree of risk
What is a disadvantage of investing in a savings account?
The rate of return fails to keep up with inflation
The application of computers in financial institutions, and the rapid diversification of customer financial services have bought enormous changes to the financial industry that have resulted in:
General upgrading of banking jobs