STANDARD 3 STUDY GUIDE- FINANCIAL
LITERACY QUIZ AND CHOICES.
What does an insurance company do? - Answers-It is a company that guarantees
compensation for specific forms of loss, damage, injury, or death.
How can you best describe a stock broker? - Answers-It is an individual or a company
who buy and sell stocks for investors.
What type of service would provide the greatest protection for a coin collection? -
Answers-A safety deposit box.
What is the primary difference between a bank and credit union? - Answers-Credit
unions are not-for-profit financial cooperatives, whose earnings are paid back to
members in the form of higher savings rates and lower loan rates. Banks are for-profit
corporations, with declared earnings paid to stockholders only.
What is the best way to prepare financially for a college education? - Answers-By using
a savings account.
What is the best option to get cash on a late weekend night? - Answers-Go to an ATM.
What is the purpose of overdraft protection? - Answers-It allows checking account
holders to temporarily make purchases with a debit card even if they don't have
sufficient funds in their account to cover them.
What is the purpose of a mortgage company? - Answers-It's a company that makes
loans for the purchase of a house or other real estate.
What is the best way to build a relationship with your banker? - Answers-Go to your
bank to withdraw money, pay your fees on time, don't have a negative balance, keep
records of your purchases.
Why do financial service providers charge fees? - Answers-The fees help offset the
expenses for developing and designing the technology, for employee salaries and other
similar expenditures.
What is the primary reason for expansion of financial services? - Answers-Because
customers today want a variety of services. The rapid growth of technology has
changed the way financial institutions do business, and it has increased the level of
competition for customers.
LITERACY QUIZ AND CHOICES.
What does an insurance company do? - Answers-It is a company that guarantees
compensation for specific forms of loss, damage, injury, or death.
How can you best describe a stock broker? - Answers-It is an individual or a company
who buy and sell stocks for investors.
What type of service would provide the greatest protection for a coin collection? -
Answers-A safety deposit box.
What is the primary difference between a bank and credit union? - Answers-Credit
unions are not-for-profit financial cooperatives, whose earnings are paid back to
members in the form of higher savings rates and lower loan rates. Banks are for-profit
corporations, with declared earnings paid to stockholders only.
What is the best way to prepare financially for a college education? - Answers-By using
a savings account.
What is the best option to get cash on a late weekend night? - Answers-Go to an ATM.
What is the purpose of overdraft protection? - Answers-It allows checking account
holders to temporarily make purchases with a debit card even if they don't have
sufficient funds in their account to cover them.
What is the purpose of a mortgage company? - Answers-It's a company that makes
loans for the purchase of a house or other real estate.
What is the best way to build a relationship with your banker? - Answers-Go to your
bank to withdraw money, pay your fees on time, don't have a negative balance, keep
records of your purchases.
Why do financial service providers charge fees? - Answers-The fees help offset the
expenses for developing and designing the technology, for employee salaries and other
similar expenditures.
What is the primary reason for expansion of financial services? - Answers-Because
customers today want a variety of services. The rapid growth of technology has
changed the way financial institutions do business, and it has increased the level of
competition for customers.
