A bank charges a borrower 6% interest on a personal loan and pays 3% interest on individual savings accounts. Why is there a difference in the two amounts of interest?
The government allows a system of bond buying.
The government regulates interest rates.
Tbe bank wants to encourage individuals to save.
The bank wants to make a profit.
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
Assume you wished to borrow $300 from a payday lender. Which of the following is the biggest drawback to this decision?
The lender gives you the money that day.
You will have to pay extremely high interest rates on the money.
The money will have to be paid back very quickly.
The lender will loan small amounts of money.
Look at the options below. Select ALL statements that are true about credit unions.
Credit unions are for-profit institutions owned by stockholders and run by a board of directors.
Credit unions can serve anyone.
Credit unions offer a wider variety of services relative to banks
Credit unions only offer small payday loans.
Credit unions can offer better rates on loans
Credit unions are owned and run by their members.
Credit unions must serve a defined segment of the population.
Credit unions offer checking and savings accounts, as well as loans.
Financial institutions such as banks and credit union channel funds from savers to