Business test ch 25
F
A Pawnshop charges lower fees than most other financial institutions.
Mutual savings bank
A ___________ is a financial institution owned by the depositors, to whom profits go.
T
A charter is required to start a bank
People who do not have a bank account
A check cashing outlet is commonly used by
Organized as a not for profit organization
A credit union differs from other financial institutions in that it is
A brand name
A name given to a product or service that is intended to distinguish it from other similar and or competitive products or services is
Electronic funds transfer
A system through which funds are moved electronically from one account to another is called ___________.
T
A trust company manages money and property for people.
Word of mouth
A type of advertising that originates with the consumer is what?
A Credit union
An example of a deposit type financial institution is
F
An insurance company is an example of a deposit type financial institution
Provide automatic teller service quickly and easily
Automatic teller machines (ATMs)
Comparison shopping
Comparing the price, quality, and service associated with one product with those of another product is called what?
A trust
Glenda Hopewell has set aside money for her child's college education. Which financial service will manage flinders investments on her behalf?
T
Interest refers to the amount paid for the use of money
Creates more jobs
Money that financial institutions Lend to others does what?
T
Mortgage companies are most helpful when a person borrows to buy a home
F
Safety deposit boxes allow savers to earn interest on their money
Clearance sales
Sales used to clear merchandise that stores no longer wish to carry in stock are
Discount stores
Stores that emphasize lower prices on their products are
Specialty stores
Stores that have a special line of products for sale are
F
The FDIC determines the interest rate banks charge for loans
Federal Reserve System
The ___________ was created by the federal government to supervise and regulate member banks so they serve the public efficiently.
Bond and stock certificates
The items most likely to be stored in a safe deposit box are
Make loans for durable goods
The main purpose of a consumer finance company is to
Supervise and regulate member banks
The main purpose of the Federal Reserve system is two
F
The main purpose of the federal reserve system is to protect a depositors money in case of bank failure
F
The profits of a credit union are shared among its depositors
A commercial bank
The widest range of financial services is offered by
Savings and loan association
Traditionally, a ___________ specialized in saving accounts and making loans for home mortgages, but in recent years these institutions have changed to savings banks
A product testing organization
Underwritten laboratories Inc., which concerns with fire and electrical safety, is an example of what?
Businesses do not have to be responsive to consumers needs
Which of the following is not true?
Make sales, earn profits, or remain in business
Without satisfied customers, businesses would not be able to what?
Investments
___________ are savings that are put to work to earn more money.
