ECONOMICS
ECONOMIC INSTITUTIONS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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They are non-profit organizations owned by members.
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They pay profits to their shareholders and can be used by anyone.
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They charge better interest rates on loans and have low fees.
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Deposits are insured for $100, 000 by the NCUA.
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Detailed explanation-1: -Characteristics of a bank can be given as follows : 1) Dealing in Money : Bank is a financial institution which deals with other people’s money i.e. money given by depositors. 2) Individual / Firm / Company : A bank may be a person, firm or a company.
Detailed explanation-2: -A shareholder can be a person, company, or organization that holds stock(s) in a given company. A shareholder must own a minimum of one share in a company’s stock or mutual fund to make them a partial owner. Shareholders typically receive declared dividends if the company does well and succeeds.
Detailed explanation-3: -Shareholders of a company are of two types – common and preferred shareholder. As their name suggests, they are the owners of a company’s common stocks. These individuals enjoy voting rights over matters concerning the company.
Detailed explanation-4: -Managing Money. A bank is a financial entity that deals with other people’s money, such as depositors’ money. Individual/Firm/Enterprise. Deposit Acceptance. Advance Payments. Withdrawal and Payment. Utility and Agency Services. Connecting Link. Identifying your name. More items