Question

Choose the statements that ACCURATELY describe an aspect of personal banking and investing.

More people use banks to store their money than any other financial institution.
Membership to a credit union is limited to specific people.
"Payday Loan" companies generally charge higher interest rates than banks or credit unions.
Credit unions generally charge higher interest rates on loans than banks.
The inability to pay a loan back to a "title pawn" lender will result in higher interest rates to the amount borrowed.
Savings accounts offer a high yield on money placed there.
Investing in stocks can bring significant rewards, as well as significant losses.
Mutual funds help provide protection from stock market losses by spreading your investment among various companies.

Answer 1

1. More people use banks to store their money than any other financial institution.

2. Membership to a credit union is limited to specific people.

3. "Payday Loan" companies generally charge higher interest rates than banks or credit unions.

4. Investing in stocks can bring significant rewards, as well as significant losses.

5. Mutual funds help provide protection from stock market losses by spreading your investment among various companies.

Answer 2

The statements that ACCURATELY describe an aspect of personal banking and investing are:

1. Membership to a credit union is limited to specific people.
2. "Payday Loan" companies generally charge higher interest rates than banks or credit unions.
3. Investing in stocks can bring significant rewards, as well as significant losses.
4. Mutual funds help provide protection from stock market losses by spreading your investment among various companies.

Step-by-step explanation:

1. Membership to a credit union is limited to specific people. The credit unions have a criterion for membership that can be based upon employer, family or geographic location.
2. "Payday Loan" companies generally charge higher interest rates than banks or credit unions. Payday loans are the companies that charge the highest interest rates as they are fast credits of small amounts of money then interest tend to be higher than regular loans or credit union loans.
3. Investing in stocks can bring significant rewards, as well as significant losses. This is due to the risk of exchange stock market.
4. Mutual funds help provide protection from stock market losses by spreading your investment among various companies. A mutual fund groups the money of different investors and invest among different securities, such as: stocks or bonds.