Cisco Is Considering Opening a Financial Institution That Accepts Savings

question 225

Multiple Choice

Cisco is considering opening a financial institution that accepts savings deposits from only its employees and makes loans to only its employees.The best description of this financial institution is that it is a

• A)credit union.
• B)commercial bank.
• C)savings and loan association.
• D)savings bank.
• E)federal government chartered credit bank.

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Definitions:

Current Account

A part of the balance of payments of a country, accounting for trade balance, net primary income, and net secondary income transactions with foreign entities.

Surplus

A situation where the quantity of a good or service supplied exceeds the quantity demanded at the current price, often leading to price reductions.

Deficit

A financial situation where expenditures exceed revenue, leading to a shortfall that must be financed through borrowing or existing reserves.

Foreign Assets

Investments or properties owned by individuals or entities in countries other than their home country.