Exercise 13. Answer the following questions.

Date: 2015-10-07; view: 425.

1. What should a person do to avoid financial troubles or make them a thing of the past? 2. What spending options do individuals have today? 3. 3. Why do people obtain credit? 4. What is the main advantage of credit? 5. What should people bear in view before buying on credit? 6. What is a credit card? 7. What do credit cards provide? 8. What drawbacks do they have? 9. What is difference between credit and debit cards? 10. Why do some people prefer to use debit cards?

11. What is a charge account? 12. Is there any charge for the use of a charge account? 13. What benefits does this account provide? 14. What is a consumer credit? 15. What does consumer credit provide? 16. What is the difference between loan credit and sales credit? 17. What is a consumer loan? 18. What are the best known types of consumer loans? 19. What is a principal? 20. Why may credit costs vary in size? 21. Why is savings considered one of the ways of good money management? 22. Why is it important for people to make savings? 23. What factors should be considered before staring any kind of savings program? 24. What does safety mean? 25. What is liquidity? 26. What is a rate of interest? 27. What is a rate of return? 28. What is a compound interest? 29. What does the yield depend on? 30. What accounts are offered by depository institutions? 31. What characteristics do checking accounts have? 32. Why do some people put their money in savings accounts? 33. What are the benefits and drawbacks of time deposits? 34. What do the certificates of deposit require from the depositors? 35. Why do financial institutions charge the highest interest rates on CDs? 36. What is the difference between money market accounts and money market funds accounts? 37. Why do people keep their money with a bank? 38. What steps should be taken to reach financial goals?