Choose the Statement That Is Incorrect About Trust and Loan

question 137

Multiple Choice

Choose the statement that is incorrect about trust and loan companies.

• A)Trust and loan companies accept deposits and make personal loans and mortgage loans.
• B)Trust and loan companies administer estates.
• C)The largest trust and loan companies are owned by banks.
• D)Trust and loan companies hold more than 70 percent of the total assets of the Canadian financial services sector.
• E)Trust and loan companies administer trusts and pension plans.

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Definitions:

Fixed Intervals

Regular, specified periods of time between events or actions.

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees.

Compound Interest

Compound interest is the interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.

Present Value

The value today of a sum of money or cash flow expected in the future, adjusted for a particular return rate.