Banking Transactions

Front

What is the main purpose of a savings account?

Back

To save money for future use

Front

What is a common feature of a savings account?

Back

Interest earned on the balance

Front

What is the primary purpose of checking accounts?

Back

To manage daily expenses and transaction

Front

What is a common feature of a checking account?

Back

Unlimited check writing

Front

Which of the following is a typical benefit of a checking account? Access to online banking and mobile banking, High interest rates, limited check writing, Penalties for overdrafts

Back

Access to online banking and mobile banking

Front

What is the key difference between the US monetary system and the international monetary system?

Back

The US monetary system is managed by the Federal Reserve, while the international system involved multiple institutions like the IMF and the World Bank.

Front

A key difference between commercial banks and credit unions is that:

Back

Commercial banks are ‘for-profit’ and credit unions are ‘not-for-profit’

Front

Which aspect of security at a depository institution is NOT TRUE? Options: Depository institutions have insurance protection for up to $250,000 per depositor per account type. If something happened to the money in the bank, you would get the value of your account back as long as the deposited amount was no more than the insurance limit, All money stored at a depository institution is kept safe at all times by numerous security measures, Information about depositors and their accounts is kept in secure data storage, Depository institutions have insurance protection. Depositors can have multiple accounts insured at the same depository institution as long as each account has no more than $100,000.

Back

Depository institutions have insurance protection. Depositors can have multiple accounts insured at the same depository institution as long as each account has no more than $100,000.

Front

Johnathan is concerned about the safety of the money in his savings account. Which type of depository institution should he choose?

Back

A commercial bank, since his deposits would be insured by the Federal Deposit Insurance Corporation (FDIC)

Front

Morgan is saving money to purchase a car before she leaves for college in two years. She wants to open a special account at a depository institution to keep her saved money safe. What would be the best advice for Morgan?

Back

Shop around for the depository institution with the highest interest rates for their savings accounts. She would be able to make regular savings deposits and earn interest while she is saving up for the computer.