Is the banking sector subject to any seasonal trends?

July 7, 2024 No Comments

A: The banking industry, including retail and investment banks, is subject to seasonal trends. Seasonality is most commonly associated with agricultural commodities and certain retail industries. The existence of significant seasonal variation in the demand for capital, the commodity banks trade in, may seem surprising

These famous scandals demonstrate the agency problem

July 7, 2024 No Comments

A: The agency problem occurs when agents do not appropriately represent the best interests of principals. Principals hire agents to represent their interests and act on their behalf. Agents are frequently hired to allow businesses to obtain new skill sets that the principals lack or

What are Social Security spousal benefits?

July 7, 2024 No Comments

A: Social Security spousal benefits are partial retirement or disability benefits granted to the spouses of qualifying taxpayers. Qualifying for Spousal Benefits To qualify for either type of spousal benefit, you must be at least 62 years old or caring for a child of the

How long should you keep bank statements?

July 7, 2024 No Comments

A: Bank statements should be retained for a minimum of one year, either in a hard copy or electronic format. After this period, they should be shredded and can be discarded. Reasons for Keeping Statements Outside of having records for purchases, bill payments and payroll

How ATM Fee Reimbursement Works (ALLY, EVER)

July 7, 2024 No Comments

A: As of 2016, many banks reimburse for automated teller machine (ATM) fees by keeping track of the charges incurred over a statement cycle, then electronically depositing the sum of those charges into the customer’s account. Online banks, most of which do not maintain physical

How do I stop emotional spending?

July 7, 2024 No Comments

Emotional spending occurs when an individual spends money for the sole purpose of improving a mood. Some reasons people engage in emotional spending are to: a) improve or maintain a mood, b) cope with stress, c) deal with loneliness, and d) improve self esteem. Individuals

How do interest rate changes affect the profitability of the banking sector?

July 7, 2024 No Comments

A: The banking sector’s profitability increases with interest rate hikes. Institutions in the banking sector such as retail banks, commercial banks, investment banks, insurance companies and brokerages have massive cash holdings due to customer balances and business activities. Increases in the interest rate directly increase

How do university endowments work?

July 7, 2024 No Comments

A: Endowments represent money or other financial assets that are donated to universities or colleges and are meant to be invested to grow the principal and provide additional income for future investing and expenditures. Typically, endowment funds follow a fairly strict set of long-term guidelines dictating the asset

Cost of Living: Texas vs California?

July 7, 2024 No Comments

A: Texas and California are two of the largest states in the union, both in terms of population and geography. The cost of living can vary significantly between individual counties or cities within either state. That said, the average Californian faces higher costs of living

Do certificates of deposit help build credit?

July 7, 2024 No Comments

A: A certificate of deposit (CD) is a financial product that is similar to a typical savings account, and is offered by banks, credit unions and other financial institutions. The Federal Deposit Insurance Corp. (FDIC) and the National Credit Union Association (NCUA) are organizations that

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