Banking services part 4
What is the most effective way to get employees to engage in corporate social responsibility (CSR) programs?
Provide incentives to employees.
How are broker-dealer firms similar to real estate firms?
They both work on a commission structures for compensation.
Ted is planning to retire from the police department and needs some financial planning advice. What is the most appropriate question Ted should ask potential financial advisors to determine if they are the best for him?
What area does the financial planner specialize in?
Why are "workforce development programs" an important part of JPMorgan Chase's CSR?
Workforce development programs provide training for individuals who need help in the job market.
Monitoring your finances includes which of the following? (Select all that apply.)
calculating any outstanding loans adding up all deposit accounts
How has JPMorgan Chase changed their corporate structure to foster CSR efforts? (Select all that apply.)
created four new committees related to CSR created a new officer position related to nonprofit engagement
If a corporate social responsibility (CSR) program at a local bank is not executed properly, what is the most likely outcome?
customer distrust
What is one difficulty with corporate social responsibility programs?
determining how profitable the program is
What are some services banks offer young investors to start saving? (Select all that apply.)
direct deposit automatic transfers set up retirement accounts
A company that has registered stockbrokers who will buy and sell stocks for customers at a reduced commission is called a _____.
discount brokerage house
What is the main reason discount brokerage houses are experiencing an increase in business?
due to increased retirement population
Why are fewer customers entering local bank branches? (Select all that apply.)
due to the sophistication of ATM machines online banking mobile phone apps
What is one benefit that a bank with "brick-and-mortar" branches has over an online-only bank when it comes to corporate social responsibility (CSR)?
face-to-face contact with local customers
A traditional ATM costs more than an intelligent ATM.
false
Banks are required to have corporate social responsibility programs.
false
European CSR programs are changing to become more like US programs.
false
In order to become a financial advisor, an exam must be passed to allow you to practice throughout the United States.
false
Personal financial software can only be accessed from a personal computer.
false
There is government oversight for banks' corporate social responsibility programs.
false
How does a bank profit from installing more intelligent ATMs?
fewer staff will be needed
A bank teller is a good example of a:
front line employee
Which of the following CSR programs would fall into the "citizenship responsibilities" category?
funding medical research
What are some key factors that affect the return on investment for securities? (Select all that apply.)
global economy inflation company performance
When looking to begin a CSR program, what are some things a business must consider? (Select all that apply.)
how much money to be allocated what issues the business wants to support find initiatives that match where they do business in the world
Unexpected inflation will:
hurt lenders
Which of the following would result in global recognition of a company's CSR program? (Select all that apply.)
implement ways to reduce the company's carbon footprint implement fair labor practices
In 2013, the Giving Tuesday program raised $28.09 million. In 2014, the Giving Tuesday program raised $45.68 million. What percentage did the donation grow YOY?
63%
Why might there be a difference in opinion between a shareholder and a stakeholder regarding a company's CSR program?
A CSR program may cut into profits, which has a direct impact on all shareholders.
What distinguishes an independent financial advisor from a captive financial advisor?
A captive financial advisor represents one company and its products.
What is the relationship between a strong corporate social responsibility program and a mission statement?
A corporate social responsibility program is defined in a mission statement.
What is the difference between a mission statement and a credo?
A mission statement usually describes a company's purpose, while a credo includes the guidelines on how to achieve that purpose.
What distinguishes a bank teller from a certified financial planner?
A teller provides basic financial services, while a certified financial planner offers a variety of more complex products.
How do consumers influence corporate social responsibility? (Select all that apply.)
Consumers are influencing the products and services being offered by corporations. Consumers are requiring more government intervention regarding CSR. Consumers are more aware of the global impact a company has, thereby buying products from socially responsible companies.
What distinguishes a traditional ATM from an intelligent ATM?
An intelligent ATM has more functions than a traditional ATM.
What is one similarity between a bank teller and a certified financial planner?
Both provide financial services
USA
Business operations are based on societal expectations
The index used to calculate most cost of living adjustments is the _____.
CPI
France
Companies are required by the government to file annual reports that are audited externally and carry CSR information
What is the difference between the definition of corporate social responsibility between the United States and Europe?
Europe includes corporate sustainability in their definition of corporate social responsibility.
What distinguishes a financial planner from a lawyer as their careers progress?
FFinancial planners widen their area of expertise as the years go on, while lawyers tend to specialize in a niche.
What is the difference between a financial planner in an independent firm and one at a bank? (Select all that apply.)
Financial planners at a bank are limited in the products they can sell. Investing with a financial planner at a bank may afford the consumer savings on other products offered by the bank.
Which state would have the highest home property insurance rates?
Florida
What is the difference between the enforcement of corporate social responsibility between the United States and France? (Select all that apply.)
French corporations are required to have corporate social responsibility programs in place. There is a formal reporting process in France for corporate social responsibility.
What effect does a strong corporate social responsibility program have on businesses? (Select all that apply.)
increased customer loyalty customer retention increased profits increased expenses
What is a key aspect of the global economy that works against you when trying to save and invest?
inflation
A business that handles client accounts but also manages compliance and reporting for smaller firms is called a(n):
insurance company
What is a key benefit to banks resulting from the technological improvements in bank ATMs?
lower fraud losses
What impact could the Committee Encouraging Corporate Philanthropy have on business?
make it difficult for a business to operate in a certain region or country
What is the most important role of a financial planner?
managing a client's assets while minimizing risk
Janine decides to invest some money in a 30-year US Treasury bond at a rate of 5%. Janine feels this is the safest way to make a return and not lose money. Is Janine correct?
No, because inflation can cause Janine to experience interest rate risk, thereby decreasing the value of her money
Which of the following would impact a bank's corporate social responsibility report?
Participating in 100,000 jobs mission program
What is the primary reason a consumer needs to walk into a bank branch?
open a new account
How often should you review your financial plan with a certified financial planner?
prior to upcoming life-changing events
What is the best way for an agent to build up a strong client base?
referrals
What is an advantage of video tellers through an intelligent ATM?
saves the bank money
What is one of the main reasons banks should focus on customer service, which is a contributing factor to bank profit?
to maintain long-term deposits
Which of the following is the most risky portfolio?
50% stocks, 30% high-yield bonds, 20% savings
What is the benefit of mobile banking as compared to traditional banking?
24/7 transaction processing
If the CPI increased from 80 to 84, the rate of inflation is:
5%
Which of the following is NOT an example of a Giving Tuesday program?
ALS
What distinguishes corporate social responsibility from a company's mission statement?
Corporate social responsibility describes how a company plans to interact with its surrounding environment
What is the difference between DIY financial services and online investment management services?
DIY financial services allows consumers to buy and sell when they want
Delilah lives in New York but went to school in Pennsylvania. She mastered in finance and wants to become a Certified Financial Planner. Right after graduation, Delilah takes the CFP exam by her college and passes the exam. Delilah moves back to New York after graduation. What are Delilah's options for getting a job?
Delilah can get a job in New York if there is a reciprocity program between Pennsylvania and New York.
How does personal financial software help to manage finances?
It consolidates all financial transactions into one place to provide a snapshot of financial worth.
How is an education program considered corporate social responsibility? (Select all that apply.)
It helps people learn about something they were unaware of, most likely related to the company's industry. It provides opportunities to have personalized interactions with existing or potential clients
What is the difference between millennials and baby boomers when it comes to corporate social responsibility (CSR)?
Millennials have been raised learning more about how to save the planet.
What is the difference between Mint.com and Quicken personal finance software?
Mint.com data can be accessed anywhere, anytime.
Which of the following committees were established by JPMorgan Chase as a result of changing regulations?
Mortgage Compliance
Why do millennials seek out employers that have better CSR programs?
NOT Employers with CSR programs are more technologically advanced OR Employers with CSR programs pay better.
Where was "Giving Tuesday" started?
New York
Indonesia
Requires businesses to have corporate societal investments in order to do business in the region
India
Requires multinational companies to invest a minimum 2% of earnings to CSR efforts
If the rate of inflation is lower than the interest rate on your savings account, then _____.
buying power increases
How are societal values shifting?
Societal values are shifting from a concentration on profits to a global, environmental awareness.
What is the difference between the SEC and FINRA?
THE SECOND The SEC is responsible for ensuring fairness for individual investors, and FINRA is responsible for overseeing all US stockbrokers and brokerage firms.
What is the most likely reason that a bank's corporate social responsibility (CSR) program fails?
The CSR targets potential customers
What is one of the main confusing aspects when trying to hire a certified financial planner?
The fee structure is different for each planner
What would likely happen to a corporate social responsibility program that was solely based on philanthropy in hard economic times?
The program would decrease.
How often is money normally allocated to CSR programs?
annually
What are the primary goals of a corporate social responsibility (CSR) program? (Select all that apply.)
build customer relationships create goodwill in the community improve or maintain the bank's reputation
Which of the following degrees would be most helpful to becoming a certified financial planner?
business and accounting
broker agent a licensed financial planner who places orders on the stock exchange on behalf of their clients, acting as a middle-man between their clients and the stock market broker-dealer firms a business serving smaller financial planning firms; handles the administration of client accounts and also manages compliance and financial reporting for the smaller firms; may also purchase orders from the smaller firms and sell them as blocks into the stock market, acting as a middle-man between the smaller financial planning firms and the stock market Financial Industry Regulatory Authority (FINRA) a self-regulatory agency overseeing brokers-dealers; formerly know as NASD, the National Association of Security Dealers mutual funds a pool of selected securities held in a portfolio, usually administered by a manager who watches the performances of all securities; investors buy shares in the fund, owning a portion of the portfolio and sharing in the profits or losses it generates reciprocity a condition or policy that facilitates extending privileges across governments securities a financial and investment instrument showing as an asset in the company's or individual's balance sheet; this can be in the form of mutual funds, stocks, bonds, and CDS (certificates of deposit of securities); also called stocks or shares
certified financial planner (CFP) financial professionals who have attained required levels of education and training in financial planning, have been trained in ethics, and have passed an exam given by the Certified Financial Planner Board of Standards; they have at least three years of experience in finances Consumer Price Index (CPI) a statistic representing the change in price for 80,000 products in the United States, published monthly by the Bureau of Labor Statistics, and used to compute the rate of inflation
What is one of the most important strategies that leads to a successful corporate social responsibility (CSR) program?
change the corporate culture
What makes a financial planning career so difficult?
changing tax laws and regulations
brand sometimes referred to as the intangible assets, it is the reputation and perceived reliability, trustworthiness, and quality associated with a company corporate social responsibility (CSR) a company's commitment to enhance the community they serve, , and have a positive impact on society at large front-line employees employees who meet customers first, and are the initial representation of the company, critical to creating and maintaining strong customer relations; employees in customer-focused jobs philanthropy an act of giving funds, goods, or services that benefit groups of needy people or society, without expectation of personal gain return on investment (ROI) a performance ration measuring the profitability of business operations and its management's effectivity in making decisions
charitable contributions in tax law, a donation to a group of people, institution, or organization that the Internal Revenue Service categorizes as eligible; donations are deducted from gross income (pretax dollars), which gives the donor a tax advantage by lowering their gross income mission statement a concise statement of the company's purpose and values tithing the practice of giving a percentage of income to charitable organizations; an ancient practice, originally giving 10% of income
What is a key skill that employees must have in order for a corporate social responsibility (CSR) program to be successful? (Select all that apply.)
communication and listening problem resolution
In America, most CSR initiatives by banks are based on which of the following?
community interests
What is a most likely reason an investor would use a DIY financial service?
comparatively lower fees
If the rate of inflation is higher than the interest rate on your savings account, what effect does this have?
consumers can save more money
When is the best time to start planning for your financial future?
once you get married
There is a lot of debate about global insurance issues. Currently, insurance is state-licensed. What would be a major benefit to the consumer if national insurance rates were rolled out?
more competitive pricing
Jodi walks into her bank and notices a sign that says "Are not insured by the FDIC or any other federal government agency, Are not deposits of or guaranteed by a bank, May Lose Value." Which of Jodi's accounts should she be worried about?
mutual fund account
When comparing CSR programs, what is the difference between a company's "operational responsibilities" and its "citizenship responsibilities"?
not Operational responsibilities are those that a business can do for society, while citizenship responsibilities refer to what a business does to society.
Which of the following statements inaccurately reflects the effects of inflation on the economy?
not Your financial losses during an inflationary cycle depend, in part, on the speed at which your personal income rises when compared with the rising prices of the goods and services you purchase.
How has JPMorgan Chase helped families suffering from the effects of the recession in recent years?
not elminated bank fees
From a customer service perspective, what are the main reasons a bank offers personal financial planning? (Select all that apply.)
offer a variety of products to its customers help customers reach their short-term and long-term goals foster a better relationship between customer and banker
Which of the following are examples of CSR programs? (Select all that apply.)
sponsoring a local softball team inviting Girl Scout Troops to tour the bank and teach them about banking sponsoring a Student Saver program
What are the implications for a corporation that participates in giving a percentage of their profit to charitable organizations?
tax deduction
When a CSR program includes community development, what is a main factor that a bank must consider to ensure the policy is a success?
that the project's intent is to build up a community, while maintaining the local character
The consumer price index is calculated by comparing the changes in a standard set of products during a base year with _____.
the cost of the base-year standard set of products at current prices
What is the main function of the YNAB app?
to create a personal budget
What is the most likely reason banks offer personal financial planning services?
to increase profits
What is the underlying reason banks engage in CSR?
to increase profits
Which of the following is paramount in earning the public's trust when it comes to CSR?
transparency and honesty
A certified financial planner must have three years of experience in addition to passing an exam given by the CFP Board of Standards.
true
Corporate social responsibility (CSR) programs are an integral part of the budgeting process.
true
JPMorgan Chase has made significant efforts to creating a diverse workforce.
true
The products and services a bank offers are influenced by the corporate social responsibility policies that the bank adopts.
true
What is a key factor in determining the proper asset allocation for your portfolio?
your risk tolerance