Financial Institutions - Stephanie Foy | Laabri | Nneɛma a ɛma wotumi yɛ ade

1

Katherine wishes to find a financial institution that will allow her to earn interest on deposits and use a debit card. Which of the following would represent her best choices?

A credit union or a payday lender

A bank or a title pawn lender

A title pawn lender or a payday lender

A bank or a credit union

SSEPF2.a

1

The loans are fast and require no credit check, but have high interest rates and fees.

The credit checks are difficult to pass, but the loans are long term.

The fees are cheap to pay back, but it takes a long time to receive the funds

The interest rates are low compared to other lenders, but most people won’t qualify

SSEPF2.a

1

Credit unions must serve a defined segment of the population.

Credit unions are owned and run by their members.

Credit unions only offer small payday loans.

Credit unions offer checking and savings accounts, as well as loans.

Credit unions are owned by stockholders and run by a board of directors.

Credit unions can serve anyone.

SSEPF2.a

1

investors/borrowers.

the government.

the Board of Directors.

the Federal Reserve.

SSEPF2.b

1

Banks

Payday Lenders

Credit Unions

Title Pawn Lenders

1

They require lengthy credit checks for a fixed long term loan.

They lend money on the equity accrued on one’s home value

They serve communities without access to traditional banking services.

They are designed to be quick and convenient while continuing the use of one’s vehicle.