WGU D363 EVALUATION SET QUESTIONS AND
ANSWERS SET A+
✔✔Oliver wants to grow his monetary assets. He decides to check into purchasing
bonds and other investments.
Which monetary asset provider should Oliver meet with?
Insurance company
Thrift institution
Stock brokerage firm
Mutual fund company - ✔✔Stock brokerage firms specialize in stocks, bonds, and many
other investments.
✔✔What is a reason one should consider opening a savings account at a credit union?
Credit unions have lower required balances than those at a traditional bank.
The federal insurance coverage is $300,000 instead of $250,000 at traditional banks.
Credit unions charge lower fees and pay higher interest rates than traditional banks
. The account is covered by the Federal Deposit Insurance Corporation (FDIC).
correct - ✔✔Credit unions are a good way to pay less in fees and earn more interest on
deposits.
✔✔What is a risk associated with opening an account with a mutual funds company?
There is greater risk with mutual fund investments than with other investments.
The management fees are higher for mutual funds than brokerage firms.
Dividends are not automatically reinvested, so growth is limited.
The account is not insured by the Federal Deposit Insurance Corporation. - ✔✔These
investment companies make money by selling shares and then use the money for
investing. However, these investments are not FDIC insured.J
, ✔✔A financial services provider earns a commission based on what it buys and sells for
a customer. It offers cash or mutual fund accounts for clients to deposit money while
waiting to invest it.
Which type of monetary asset provider does this describe?
Credit union
Stock brokerage firm
Community bank
Mutual savings bank - ✔✔Stock brokerage firms are licensed to buy and sell stock and
can also hold funds for a client waiting to invest.
✔✔Which monetary asset provider can offer transactional services such as business
loans, basic investment products, and checking and savings accounts?
Community bank
Commercial bank
Savings institution
Mutual savings bank - ✔✔Commercial banks provide transactional services that
include making business loans, offering basic investment products, and offering
checking and savings accounts.
✔✔What is a reason why Charlotte should consider opening an online bank account?
The federal insurance coverage for online banks is higher than at traditional banks.
An online bank's primary focus is on checking and savings accounts.
The online bank will focus more on relationships than a transactional bank.
Online banks pay higher interest rates than traditional banks. - ✔✔Online banks have
no brick-and-mortar locations, so their expenses are far less. These banks are able to
pay higher interest rates than traditional banks.
✔✔Jack wants to save money. He is researching account and investment options to
see which would be the safest.
Which account or investment option offers FDIC insurance that protects Jack's
deposits?
Mutual funds
Insurance
Stocks
Savings account - ✔✔A savings account at a depository institution is insured by the
FDIC against loss of both the balance on deposit and the accrued interest.
✔✔Omar is evaluating checking account options at his bank. He sees that the checking
account does not pay interest.
Which type of account is Omar considering?
Money market account
Demand-deposit account
ANSWERS SET A+
✔✔Oliver wants to grow his monetary assets. He decides to check into purchasing
bonds and other investments.
Which monetary asset provider should Oliver meet with?
Insurance company
Thrift institution
Stock brokerage firm
Mutual fund company - ✔✔Stock brokerage firms specialize in stocks, bonds, and many
other investments.
✔✔What is a reason one should consider opening a savings account at a credit union?
Credit unions have lower required balances than those at a traditional bank.
The federal insurance coverage is $300,000 instead of $250,000 at traditional banks.
Credit unions charge lower fees and pay higher interest rates than traditional banks
. The account is covered by the Federal Deposit Insurance Corporation (FDIC).
correct - ✔✔Credit unions are a good way to pay less in fees and earn more interest on
deposits.
✔✔What is a risk associated with opening an account with a mutual funds company?
There is greater risk with mutual fund investments than with other investments.
The management fees are higher for mutual funds than brokerage firms.
Dividends are not automatically reinvested, so growth is limited.
The account is not insured by the Federal Deposit Insurance Corporation. - ✔✔These
investment companies make money by selling shares and then use the money for
investing. However, these investments are not FDIC insured.J
, ✔✔A financial services provider earns a commission based on what it buys and sells for
a customer. It offers cash or mutual fund accounts for clients to deposit money while
waiting to invest it.
Which type of monetary asset provider does this describe?
Credit union
Stock brokerage firm
Community bank
Mutual savings bank - ✔✔Stock brokerage firms are licensed to buy and sell stock and
can also hold funds for a client waiting to invest.
✔✔Which monetary asset provider can offer transactional services such as business
loans, basic investment products, and checking and savings accounts?
Community bank
Commercial bank
Savings institution
Mutual savings bank - ✔✔Commercial banks provide transactional services that
include making business loans, offering basic investment products, and offering
checking and savings accounts.
✔✔What is a reason why Charlotte should consider opening an online bank account?
The federal insurance coverage for online banks is higher than at traditional banks.
An online bank's primary focus is on checking and savings accounts.
The online bank will focus more on relationships than a transactional bank.
Online banks pay higher interest rates than traditional banks. - ✔✔Online banks have
no brick-and-mortar locations, so their expenses are far less. These banks are able to
pay higher interest rates than traditional banks.
✔✔Jack wants to save money. He is researching account and investment options to
see which would be the safest.
Which account or investment option offers FDIC insurance that protects Jack's
deposits?
Mutual funds
Insurance
Stocks
Savings account - ✔✔A savings account at a depository institution is insured by the
FDIC against loss of both the balance on deposit and the accrued interest.
✔✔Omar is evaluating checking account options at his bank. He sees that the checking
account does not pay interest.
Which type of account is Omar considering?
Money market account
Demand-deposit account
