ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Stocks are insured against loss by most banks and credit unions. By automatically reinvesting dividends, you are buying additional shares and increasing your investment. Interest is the fee received for the use of money.

Detailed explanation-2: -Both the NCUA and FDIC are independent federally owned agencies responsible for taking measures to keep financial institutions afloat. People usually ask, “are credit unions FDIC insured”, but now we know that FDIC insures banks only, and the agency responsible for credit unions is the NCUA-so when it comes to NUAC vs.

Detailed explanation-3: -Bond-A bond acts like a loan or an IOU that is issued by a corporation, municipality or the U.S. government. The issuer promises to repay the full amount of the loan on a specific date and pay a specified rate of return for the use of the money to the investor at specific time intervals.

Detailed explanation-4: -The amount you keep in your savings account will depend on your goals for the funds, or your use of the account. If you’ve set up the savings account to sweep excess funds from your checking account, your balance is likely to vary regularly.