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Unit 4 quiz Personal and Family Finance

Terms in this set (15)

Michael keeps hearing a lot about stocks, bonds, and other types of investments, but he has no idea where to begin when it comes to investing. He is looking for an expert help him take his money and make investment purchases for him. Which type of business will best fit Michael's interests?
brokerage firm
Depository institutions always have insurance, and most savings, checking, and certificate of deposit accounts in the United States are insured. Which organization insures these funds?
FDIC
Rebecca received a check from her parents for her 20th birthday. She, however, does not have an account at any bank, so she is unable to cash the check. Even though it will cost her a fee, where can Rebecca go to get her money?
check cashing business
The Federal Deposit Insurance Corporation (FDIC) is an insurance agency that is supported by the government in the United States.
True
Which type of institution receives money from households like commercial banks do, but uses a large percentage of their money on home mortgages and receives money from individual deposits?
savings and loan institution
What is the main purpose of government regulations of financial institutions?
to protect consumers and their money
Jennifer has recently found a new job at a local architectural firm. They have offered her a chance to invest money for her retirement. For every 6 percent Jennifer invests from her salary, her company will fund 3 percent. What type of investment does this describe?
401k
Which financial service offers credit opportunities that can be short-term or offered over an extended period of time and are used for big things like home mortgages, automobiles, home improvements, education, medical expenses, or travel?
loans
Thomas hates physically going to a bank. He wants to be able to open an account and start a banking relationship without ever leaving his house. What is the BEST banking option for Thomas?
web-only financial institution
Who owns mutual savings institutions?
the individuals who deposit money in the institution
Simba is looking for a financial institution to give him a loan for a new house. Which of these institutions would be LEAST likely to provide this service?
brokerage firm
When comparing financial institutions, price is an important factor. What is TRUE about prices in financial institutions?
Higher interest rates will give you a higher return on your money.
Patrice is trying to decide if she needs a checking account, a savings account, or both. She asks for your advice. What TRUE statement about these accounts can you share with Patrice?
Some savings and checking accounts have a minimum balance requirement and will charge a fee if the balance falls below this amount.
Which type of financial institution sells shares to individuals and pools funds to buy financial securities?
mutual fund company
Employers partially fund 401k accounts by using a portion of wages before tax.
True
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