Steven is looking at banks for checking and savings accounts. some offer home loans and others do not. steven may need a home loan sometime in the next few years. but he wonders if he should really ask what kinds of loans the bank makes, because he is getting a checking account, not a home loan. which statement below gives the best reason for steven to consider loan availability in choosing a checking account? a. the bank offers $100 to customers who get a pre-approval for a home loan. b. the bank provides atms in all the suburbs where steve is interested in living. c. banks that provide home loans can usually charge lower fees on checking accounts. d. if he needs a home loan in the future, he will have a relationship with the bank.

Option D is correct.

Step-by-step explanation:

d. If he needs a home loan in the future, he will have a relationship with the bank.

Usually, when a person has an account in a certain bank and if he is associated with a particular bank for several years, and all his transactions are positive and without any defaults, then a healthy relationship develops between the person and his bank. When that person applies for loan within the same bank, there are very high chances that his loan can get approved without any hassle and he can get a lower interest rate also.

The option (d) is correct.

To consider loan availability in choosing a checking account, he will have a relationship with the bank.

Further Explanation:

Relationship with the bank:

Maintaining a relationship with the bank is important because it will help a person in getting a loan quickly. It also helps a bank in evaluating the credit rating of an individual (which is very significant for a bank to lend money). Relationship with the bank will also help an individual in easy documentation without any additional verification.

Justification for correct and incorrect

(a)

The bank offers $100 to customers who get a pre-approval for a home loan:

Offering $100 to its customers sounds appealing, but it is a wrong way of issuing a home loan to a customer. The bank needs to check the credit rating of the individual. Credit rating means that the ability of the customer to pay its debt. The bank should also check the income level of the customer to know if the customer will be able to pay interest on time or not. Therefore, this option is incorrect.

(b)

The bank provides ATMs in all the suburbs where Steve is interested in living:

Providing ATM facilities in the suburbs is a good thing for the bank as it will help the bank in getting more customers. Since, Steve is looking for a loan in future, having ATMs from the bank in that area would be of a little or no use to him as payment for purchasing a home will be directly debited from his account. Therefore, this option is not correct.

(c)

Banks that provide home loans can usually charge lower fees on checking accounts:

The fee that the bank charges on checking accounts is usually very minimal, and it does not affect the budget of a customer. So, enticing the customers by saying that they will charge lesser fee on checking account will not help a customer in getting a loan quickly.

(d)

If he needs a home loan in the future, he will have a relationship with the bank:

It is indeed correct to say that having a relationship with the bank helps a customer in getting a loan easily as the bank is going to trust him in long-term and helps him with the unnecessary additional documents procedures.

Learn more:

1.  Minimum payment of credit card

2.  Charging fee in case of credit card

3.  Consequences of non-payment of monthly credit card payment

Answer details:

Grade: Senior School

Subject: Business Studies

Chapter: Banking

Keywords: Relationship with bank, loans, additional documents, checking account, home loan, few years, ATMs in the suburbs, access to ATMs, checking account, savings account.

yess

step-by-step explanation:

idk whyy this is happening, i cant even read my notification bc i keep getting errors

~coco

the homeowners insurance cost for a 115,000 wood frame house is 80,500.

step-by-step explanation:

it is given that the coverage rate for wood frame house is 0.7.

the value of wood frame house is 115,000.

.

homeowners insurance cost for a 115,000 wood frame house is

therefore the homeowners insurance cost for a 115,000 wood frame house is 80,500.