The list describes several actions taken by individuals regarding their personal fances.
Matthew puts her weekly tutoring paycheck into a checking account.
Yahir receives money from a bank to buy a delivery van for his bakery and agrees to pay it back over time with interest.
A local business receives a home loan from a credit union to expand its building.
Which of the following best describes the basic purpose of the financial institutions highlighted in this list?
F. To provide individuals with fixed and variable jobs so they can earn an income.
G To allow people to manage their money by keeping it safe, borrowing money, and lending money
H. To help businesses calculate their weekly profits and allocate allowances to employees
J. To ensure that all items purchased by individuals are kept safe from damage
Four students were asked to explain the main reasons people and businesses utilize a financial institution, such as a bank or a credit union. Their explanations are recorded in the table below.
STUDENT | EXPLANATION |
|---|---|
Carolina | Financial institutions help people invest in the stock market and guarantee they never lose money. |
Santiago | Financial institutions provide safe storage for deposits, offer loans for large purchases, and lend money to qualified borrowers. |
Wyatt | Financial institutions calculate the exact profit a business makes and pay the sales taxes for the community. |
Jayce | Financial institutions provide people with free goods and services in exchange for opening an account. |
Which of these statements describe the primary purposes of a financial institution?
I. | Providing short-term or long-term loans to qualified borrowers |
II. | Offering a safe environment for customers to deposit and store their money. |
III. | Selling retail goods and household grocery items at discounted prices. |
IV. | Lending money to individuals to help finance large purchases, like a home or car |
A teacher drew a web diagram on the board to illustrate the primary services provided by a financial institution.
Which term best replaces the question mark to complete the diagram?