QUESTION What is the process called that insurance companies use to decide who should be insured? A) underwriting B) evaluating C) financing D) insuring E) accounting ANSWER Answer: A Explanation: A) The process that insurance companies use to determine who should be insured is called underwriting.
Date: September 3rd, 2020
QUESTION What are the three types of loans available from commercial finance companies? What will be an ideal response? ANSWER Answer: The three types of loans available from commercial finance companies are lines of credit, revolving credit agreements, and transaction loans. Explanation: The three types of loans available from commercial finance companies are lines […]
Date: September 3rd, 2020
QUESTION Which of the following is an example of a nonbank? A) finance company B) savings and loan C) mutual savings D) commercial E) credit union ANSWER Answer: A Explanation: A) Nonbanks are financial institutions—insurance companies, pension funds, finance companies, and brokerage firms—that offer many of the same services banks provide.
Date: September 3rd, 2020
QUESTION Would it be considered a barter if Sheila, a personal chef, cooked a five-course dinner for friends and, since they were friends, charged them half what she usually charges? What will be an ideal response? ANSWER Answer: This would not be considered a barter because Sheila would still be compensated with money, not […]
Date: September 3rd, 2020
QUESTION For which types of banks does the NCUA provide insurance coverage? A) federal banks B) savings and loans C) local banks D) investment banks E) credit unions ANSWER Answer: E Explanation: E) The NCUA (National Credit Union Administration) provides insurance coverage for credit union accounts.
Date: September 3rd, 2020
QUESTION What is one difference between savings and loan associations and mutual savings banks? A) Only savings and loan associations make loans for home mortgages. B) Only mutual savings banks have recently ventured into life insurance and mutual funds. C) Mutual savings banks are owned by their depositors, rather than by shareholders. D) Only mutual […]
Date: September 3rd, 2020
QUESTION Which of the following is NOT among those who are protecting your money in banks? A) Federal Deposit Insurance Corporation B) Savings Association Insurance Fund C) National Credit Union Administration D) New York Stock Exchange E) Federal Reserve ANSWER Answer: D Explanation: D) The three major sources of government banking deposit protection are […]
Date: September 3rd, 2020
QUESTION Which of the following is TRUE of the FDIC? A) It is an independent agency of the federal government. B) It insures only those deposits made in federal banks. C) It currently insures individual depositors’ accounts up to $100,000. D) It does not insure IRAs or other retirement accounts. E) It covers mostly noncommercial […]
Date: September 3rd, 2020
QUESTION Financial mistakes earlier in his life have caused Ajax to have a blemished credit history, and he’s now willing to pay a higher rate of interest to compensate for the fact of his increased credit risk. What type of loan will he likely qualify for? A) Super-NOW loan B) derivative C) investment loan D) […]
Date: September 3rd, 2020
QUESTION What are the three parts of a financial plan? What will be an ideal response? ANSWER Answer: The three parts of a financial plan are forecasting (predicting revenues, costs, and expenses), budgeting (a detailed plan for estimated revenues and expenses for the period), and financial controls (in which revenues and expenses are compared […]
Date: September 3rd, 2020
