Private Financial Institutions

Question 1

How are credit unions and savings and loans different from commercial banks and finance companies?

Revolt · Accepted Answer

Credit unions and savings and loans are not usually owned by investors.

Question 2

Financial institutions that are formed by groups of people who share something in common are called __________.

Revolt · Accepted Answer

credit unions

Question 3

Which financial institutions are often called thrifts?

Revolt · Accepted Answer

savings and loans

Question 4

The Second Bank of the United States was controlled by __________.

Revolt · Accepted Answer

private stockholders

Question 5

Each of the following was a reason for the financial collapse of many savings and loans during the 1980s and 1990s EXCEPT:

Revolt · Accepted Answer

high interest rates

Question 6

Following the Civil War, the amount of currencies issued by state banks decreased due to __________.

Revolt · Accepted Answer

heavy taxes

Question 7

Each of the following was a problem for the US economy as a result of early banks printing their own paper money EXCEPT:

Revolt · Accepted Answer

money represented gold deposited in the bank

Question 8

Savings and loans are financial institutions that are known as thrifts because they encourage __________.

Revolt · Accepted Answer

saving

Question 9

The 2007 financial crisis was started by risky investments connected to __________ loans.

Revolt · Accepted Answer

mortgage

Question 10

In the 1990s and 2000s, the number of banks decreased worldwide as a result of __________.

Revolt · Accepted Answer

mergers

Private Financial Institutions Answers