In: Finance
According to the FDIC 2015 National Survey of Unbanked and Underbanked Households, which of the following individuals would be considered underbanked?
Sally lives with her mother, who has a bank account. Sally does not. She recently received a loan from a payday loan company. |
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Joel lives by himself and he does not have a checking or saving account. His employer pays him by loading funds on a stored-value card. He pays his rent and other bills using money orders. |
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David lives with his brother and his brother has a checking account, but David does not. His employer pays him by loading funds on a stored-value card. David does not use any credit or financial services other than the stored value card. |
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Olga has a checking account, but no savings account. She receives social security and has no credit from banks or elsewher. 2.) CDOs differ from conventional, pass-through mortgage-backed securities (MBS) in that
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(1) The Federal Deposit Insurance Corporation (FDIC) 2015 National Survey of Unbanked and Underbanked Households found out that 7 percent of households were unbanked and that one in five households was underbanked in 2015. That figure was the lowest recorded since the survey had started in 2009.
People who do not use mainstream financial services, such as the checking or savings accounts, and primarily conduct transaction in cash when using alternative financial services like payday lending or check cashing, are considered unbanked.
According to this, Olga can be only considered as underbanked. This is because the other three namely Sally,Joel and David don't have their own checking and savings account and primarily conduct transaction in cash when using alternative financial services and hence are considered as unbanked. Olga has her own checking account but has no credit from banks or elswhere which makes her the most suitable to be distinguished as underbanked.