PFIN 7:STUDENT EDITION-TEXT
7th Edition
ISBN: 9780357033616
Author: Billingsley
Publisher: CENGAGE L
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Textbook Question
Chapter 4, Problem 3FPE
Choosing a new bank. You’re getting married and believe your present bank is not a good fit. Discuss how you should go about choosing a new bank and opening an account. Consider the factors that are important to you in selecting a bank—such as the type and ownership of new accounts and bank fees and charges.
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Chapter 4 Solutions
PFIN 7:STUDENT EDITION-TEXT
Ch. 4 - Prob. 1LOCh. 4 - Describe todays financial services marketplace,...Ch. 4 - Prob. 3LOCh. 4 - Prob. 4LOCh. 4 - Prob. 5LOCh. 4 - Develop a cash management strategy that...Ch. 4 - Adapting to a low-interest-rate environment. A...Ch. 4 - Prob. 2FPECh. 4 - Choosing a new bank. Youre getting married and...Ch. 4 - Prob. 4FPE
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Similar questions
- Explain as to why people prefer to keep their savings in a bank though there are other opportunities where return on investment is higher than bank deposits.arrow_forwardYou will discuss credit from the lenders point of view. What factors do lenders consider when making new real estate loans? When banks make loans they are taking a risk based on several factors including creditworthiness. You will discuss how banks determine the creditworthiness of borrowers. Topic: Creditworthiness Respond to the following questions: . How does the bank determine if a borrower is credit worthy? . Does this analysis guarantee that the borrower will be able to pay off the loan as agreed? • What happens if their credit scores are below 500? What alternatives would someone with no credit history have? .arrow_forwardSuppose you go to your local bank, intending to buya certificate of deposit with your savings. Explain whyyou would prefer this to offering a loan, at an interestrate that is higher than the rate the bank pays oncertificates of deposit (but lower than the rate the bankcharges for car loans), to the next individual who entersthe bank and applies for a car loanarrow_forward
- What is a common example of paying for risk transfer in everyday life? Purchasing a house Buying auto insurance Investing in the stock market Saving money in a bank accountarrow_forwardLuis wants to enter income directly into the bank register. Where will he find the register? Select an answer: in Deposits in Chart of accounts in Live Bookkeepingarrow_forwardHow to increase ROA and ROE in a rural bank? Explain thoroughlyarrow_forward
- You decide to start a business selling covers for smart phones in a mall kiosk. To buy inventory, you need to borrow some funds. Why are you more likely to take out a bank loan than to issue bonds? Do you have other options?arrow_forwardWhen selecting a financial institution, you should consider: (select all that apply) fees for services. | convenience, such as location of branches and online access to your account. interest rates charged on loans. interest rates earned on your savings.arrow_forwardWhere should you go to set up a new bank feed or link to a bank account in a client's QuickBooks Online company? A. Expenses Center B. Accounting Center C. Sales Center D. Banking Centerarrow_forward
- Your friend Binna has a money market mutual fund account, automatic deposit of her paycheck into an interest-bearing checking account at the company credit union, and a CD from the local branch of a bank that advertises "coast-to-coast" banking. What is the benefit of "mixing and matching" financial institutions and their services?arrow_forwardSuppose Beth comes into a large sum of money and decides to lend it out to earn interest on it. Because she lacks the expertise to evaluate the credit risks of potential borrowers, she decides to deposit the money in her local bank, a financial intermediary. This is an example of how financial intermediaries can help solve the problem of: Adverse selection Fractional reserve banking Insolvency O Time depositarrow_forwardObtaining credit begins with you. After you complete a credit application, the lender decides if you are a good risk. Agencies that collect credit information about individuals are called credit bureaus. For a fee, they provide information about you that lenders need to decide if you are a good risk. The information you provide on your application is checked against the information the credit bureaus have collected about you. Why is your credit application approved or denied? ооооо Good news-your credit application was approved. What are the major factors about you that the lender used to evaluate your creditworthiness? Check all that apply. оооо APPROVED Physical appearance Character Political affiliation Capacity Religion 0000 MEGACREDIT Capital Extra 199 SIE TEL Your friend recently applied for credit and was turned down. Why was your friend probably denied credit? Check all that apply. History of personal bankruptcy FICO score greater than 850 Absence of checking, savings, or other…arrow_forward
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