PF2: Financial Institutions - Jeffrey See | Laabri

1

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.

SSEPF2.b

1

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 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.

SSEPF2.a

1

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.

SSEPF2.a

1

the Board of Directors.

the Federal Reserve.

the government.

investors/borrowers.

SSEPF2.b