POF Lesson 2 Questions with Complete Correct Answers | Grade A+

bank Ans: A depository institution where one can keep and borrow money and take care of financial affairs. compound interest Ans: Interest earned on both the principal amount and any interest already earned. credit union Ans: A cooperative nonprofit financial institution that is privately owned and controlled by its members. It provides depository and lending services to its members. Federal Deposit Insurance Corporation (FDIC) Ans: An agency of the United States that promotes public confidence in the US financial system by (1) insuring deposits in banks and thrift institutions for up to $250,000; (2) identifying, monitoring, and addressing risks to the deposit insurance funds; and (3) limiting the effect on the economy and the financial system when a bank or a thrift institution fails. Federal Reserve Ans: The central bank of the United States. There are 12 of these located in major cities across the nation. It helps to regulate the US monetary and banking system. finance Ans: The science of the management of money and other assets; the management of money, banking, investments, and credit. financial advisor Ans: A professional who provides financial planning and advice on financial matters. financial literacy Ans: The ability of individuals to make appropriate decisions in managing their personal finances. financial services industry Ans: Financial institutions that help consumers, businesses, and governments manage money. These institutions can be depository or no