Multiple Choice Question Which deposit-type institution has seen a dramatic increase in customers in recent years? commercial banks savings and loans credit unions mutual savings banks
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Breanna O.
Sabrina is trying to decide between opening an account at a local commercial bank or at her college credit union. What TRUE statement about these two institutions will BEST influence her decision? A. Since commercial banks are for-profit, they can often keep their costs down, which translates into higher interest rates for savings and lower rates on loans. B. Since credit unions are for-profit, they can often keep their costs down, which translates into higher interest rates for savings and lower rates on loans. C. Since commercial banks are nonprofit, they can often keep their costs down, which translates into higher interest rates for savings and lower rates on loans. D. Since credit unions are nonprofit, they can often keep their costs down, which translates into higher interest rates for savings and lower rates on loans.
Mauya M.
1. Brevin needs to find a local depository institution so he can open up checking and savings accounts. After researching the options in his town, Brevin decides to open an account at a(n) ______. This institution offers higher interest rates on deposits due to its not-for-profit status. A. Credit Union B. Commercial bank C. Investment Bank D. Savings & Loan association 2. Brevin determines he has $200 he can invest each month. He would like to invest in something long-term, so he chooses stocks. Stocks appeal to Brevin because he has the potential of earning two types of returns: ______. A. Preferred stock and capital gains B. Interest and dividends C. Dividends and capital gains D. Interest and preferred stock 3. In addition to stocks, Brevin is interested in bonds. He understands that bonds are considered a relatively safe and conservative investment. Brevin chooses an intermediate-term bond—one that matures in ten years. On the maturity date, Brevin expects to receive the _____ of the bond. A. Coupon rate B. Current yield C. Premium rate D. Par value 4. Brevin and his friends are discussing investments one evening. Brevin’s friend, Yash, says he studies the stock market looking for stocks that he thinks are going to increase in price much faster than average for a sustained time. Yash is using which type of strategy for investing in securities? A. Investing Growth B. Buying and holding C. Value investing D. Market timing
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