Question

What are brokerage firms? 2. what are depository and nondepository financial institutions? how do they differ? 3. what are credit unions? 4. what are demand deposit accounts? 5. what are bonds? critical thinking questions 1. what are some considerations in choosing a financial institution? which one do you think would be the most important consideration for you in choosing a financial institution? 2. what are the pros and cons of u.s. savings bonds? 3. what are some of the problems that individuals might face if they use one of the "problematic" financial institutions? 4. what are some of the consumer protections available? what can individuals do to protect themselves? 5. what are some of the advantages and disadvantages of choosing a federally-insured account?

Answer 1

1:  Brokerage firms:  a type of non-depository financial institution that manages and facilitates the purchase of bonds, stocks, and other types of investments. 
2.  Depository and non-depository financial institutions:  Depository tends to be things such as banks and non-depository are life insurance companies; differences between both is that non-depository are not insured by FDIC.
3.  Credit Unions:  non-profit, member owned institutions and another type of depository institution.
4.  Demand deposit accounts:  accounts that individuals and business can use to pay their bills.
5.  Bonds:  investments that promise to pay a certain amount of interest on the principle amount after a given time.
Critical Thinking.  1.  What are some considerations in choosing a financial institution? Which one do you think would be the most important consideration for you in choosing a financial institution? --When a choosing financial institutions, you want to consider location of the institution and the availability of services in your area.  Important factors in choosing for the location and services provided; convenience and how often you go.

2. What are the pros and cons of U.S. savings bonds? --Saving Bonds offer a secure investment; does not cost you state or local tax.  The con would be figuring when to cash them in or the maturity of the bond can be confusing.

3. What are some of the problems that individuals might face if they use one of the "problematic" financial institutions?-- If something happens that results in the person going to the institution for help; institution can charge a high interest or the loan could be short.  This can result to the person being in debt or have a mark on their financial record for late payments.

4. What are some of the consumer protections available? What can individuals do to protect themselves? --Many accounts in the United States have FDIC insurance that covers $100,000 of the money in the indiviudal's account.  The government has set regulations that can and can't be practiced with consumers; such as regulations required for banks to disclose all aspects of the agreements with their clients.

5. What are some of the advantages and disadvantages of choosing a federally-insured account?--Advantage:  federally insured for up to $100,000.--Disadvantage:  interest at which account pays is well below the inflation rate