Nico Is the New Assistant Branch Manager of a Larger

question 169

Essay

Nico is the new assistant branch manager of a larger Florida-based bank and the branch manager has asked him a question to test his knowledge. The question he asked is which rate should the bank advertise on monthly-compounded loans, the nominal annual percentage rate or the effective annual percentage rate? Which rate should the bank advertise on quarterly-compounded savings accounts? Explain. As a consumer, which would you prefer to see and why?

---

Definitions:

Humanistic Theories

A perspective in psychology that emphasizes the study of the whole person, looking at human behavior not only through the eyes of the observer but through the eyes of the person doing the behaving.

Collectivism

A cultural or political perspective valuing the goals of the group or community over the goals of the individual.

Extended Family

A family group that extends beyond the nuclear family, including grandparents, aunts, uncles, and cousins.

Culture Shock

A feeling of disorientation, uncertainty, or anxiety that often occurs when experiencing a new and unfamiliar culture.