Basic bank services do not include: Bank accounts. Electronic funds transfer. Cash register servicing. Checking. Bank deposits. Stocks that pay little or no cash dividends but are attractive to investors because of expected stock price increases are known as: Mid capital stocks. Large capital stocks. Small capital stocks. Growth stocks. Income stocks:
The correct answer and explanation is:
Correct Answer:
- Basic Bank Services Do Not Include: Cash register servicing
- Stocks That Pay Little or No Cash Dividends But Are Attractive to Investors Because of Expected Stock Price Increases Are Known As: Growth stocks
Explanation:
1. Basic Bank Services Do Not Include: Cash Register Servicing
Banks typically provide a variety of financial services categorized under basic banking services. These include offering bank accounts (savings, checking, and current accounts), facilitating electronic funds transfers (EFTs) for seamless payments, providing options for checking services (e.g., issuing checks), and handling bank deposits where individuals or businesses can securely store their money.
Cash register servicing, on the other hand, is not part of basic banking services. This is an activity more aligned with equipment maintenance or retail business services, where vendors or service providers repair, calibrate, or maintain cash registers and other point-of-sale systems. Banks focus on monetary transactions and financial management rather than servicing physical business equipment.
2. Stocks That Pay Little or No Cash Dividends But Are Attractive to Investors Because of Expected Stock Price Increases: Growth Stocks
Growth stocks represent shares in companies that are expected to grow at a rate significantly higher than the overall market. These companies typically reinvest their profits into business expansion, research and development, or acquiring new assets rather than paying out dividends to shareholders. Investors are attracted to growth stocks because of their potential for capital appreciation—an increase in the stock’s price over time.
Examples of growth companies often include technology firms or startups with innovative products and services. These firms prioritize expanding their market share and increasing revenue, which can result in substantial future profitability.
Investors seeking growth stocks are usually more focused on long-term gains and are willing to tolerate higher risks, as these stocks can also be volatile. Conversely, income stocks emphasize steady dividend payouts, catering to investors seeking immediate cash returns rather than future price increases.
In summary, growth stocks are ideal for individuals who prioritize future financial gains through price appreciation over short-term income.