FFM Latest Exam Study Guide with Complete
Solutions 2025
liquidity - ANSWER ease with which an asset can be converted to cash
financial services industry - ANSWER companies that provide checking, savings, and
money market accounts and possible credit, insurance, investment, and financial
planning services
depository institutions - ANSWER financial institutions in the US that are legally allowed
to accept monetary deposits from consumers and make loans. Ex: commercial banks,
savings, banks, and credit unions
commercial banks - ANSWER type of bank that provides services such as accepting
deposits, making business loans, and offering basic investment products
savings banks - ANSWER focus primarily on accepting savings and providing mortgage
and consumer loans
Deposit Insurance Fund (DIF) and Federal Deposit Insurance Corporation (FDIC) -
ANSWER federal agencies that issuer loss in commercial banks and savings banks. Their
regulator is the Office of Comptroller of the Currency.
Credit Union - ANSWER member-owned not-for-profit, insured financial institutions that
provide checking, savings, and loan services to members
National Credit Union Administration (NCUA) - ANSWER insures accounts at credit
unions
, National Credit Union Share Insurance Fund (NCUSIF) - ANSWER federally chartered
credit unions insurance
mutual savings bank - ANSWER accepts deposits and makes housing and consumer
loans. Depositors own the institution and share in the earnings
federal deposit insurance - ANSWER insures deposits, both principal amounts and
accrued interests. Up to $250,000 per account.
payable at death accounts - ANSWER accounts set up so that the funds go to a
designated person upon the death of the account holder
mutual funds - ANSWER investment companies that raise money by selling shares to the
public and then invest that money in diversified investment portfolios
stock brokerage firms - ANSWER licensed financial institutions specialized in selling and
buying stocks, bonds, and other investments and providing advice to investors
insurance companies - ANSWER provide property, liability, health, life, and other
insurance products
desired checking accounts - ANSWER low cost, interest earning accounts to pay ongoing
expenses.
desired savings account - ANSWER interest earning accounts to accumulate wealth or
reserve for unexpected expenses
Solutions 2025
liquidity - ANSWER ease with which an asset can be converted to cash
financial services industry - ANSWER companies that provide checking, savings, and
money market accounts and possible credit, insurance, investment, and financial
planning services
depository institutions - ANSWER financial institutions in the US that are legally allowed
to accept monetary deposits from consumers and make loans. Ex: commercial banks,
savings, banks, and credit unions
commercial banks - ANSWER type of bank that provides services such as accepting
deposits, making business loans, and offering basic investment products
savings banks - ANSWER focus primarily on accepting savings and providing mortgage
and consumer loans
Deposit Insurance Fund (DIF) and Federal Deposit Insurance Corporation (FDIC) -
ANSWER federal agencies that issuer loss in commercial banks and savings banks. Their
regulator is the Office of Comptroller of the Currency.
Credit Union - ANSWER member-owned not-for-profit, insured financial institutions that
provide checking, savings, and loan services to members
National Credit Union Administration (NCUA) - ANSWER insures accounts at credit
unions
, National Credit Union Share Insurance Fund (NCUSIF) - ANSWER federally chartered
credit unions insurance
mutual savings bank - ANSWER accepts deposits and makes housing and consumer
loans. Depositors own the institution and share in the earnings
federal deposit insurance - ANSWER insures deposits, both principal amounts and
accrued interests. Up to $250,000 per account.
payable at death accounts - ANSWER accounts set up so that the funds go to a
designated person upon the death of the account holder
mutual funds - ANSWER investment companies that raise money by selling shares to the
public and then invest that money in diversified investment portfolios
stock brokerage firms - ANSWER licensed financial institutions specialized in selling and
buying stocks, bonds, and other investments and providing advice to investors
insurance companies - ANSWER provide property, liability, health, life, and other
insurance products
desired checking accounts - ANSWER low cost, interest earning accounts to pay ongoing
expenses.
desired savings account - ANSWER interest earning accounts to accumulate wealth or
reserve for unexpected expenses
