BANKING AFFAIRS

Detailed explanation-1: -Consumer finance companies, which are often advertised on TV, are also known as: Small loan companies, Consumer finance companies specialize in making small loans to individuals or businesses.

Detailed explanation-2: -Certificates of Deposit (CDs) Certificates of deposit (CDs) can be a good choice when you want steady, predictable investment income that is federally insured.

Detailed explanation-3: -Generally, certificates of deposit have the highest interest rate and savings accounts the lowest. Some companies declare and pay dividends to their shareholders.

Detailed explanation-4: -Although cash dividends are common, dividends can also be issued as shares of stock. Various mutual funds and exchange-traded funds (ETFs) also pay dividends. A dividend is a reward paid to the shareholders for their investment in a company’s equity, and it usually originates from the company’s net profits.

Detailed explanation-5: -Liquidity refers to the ease with which an asset, or security, can be converted into ready cash without affecting its market price. Cash is the most liquid of assets, while tangible items are less liquid.