Bank Deposit Notification Requirements

Front

If a person makes a deposit of $10,000 or more into a bank account, the bank must notify the   

Answer A US Treasury Department. 

Answer B Federal Deposit Insurance Corporation. (FDIC). 

Answer C State Banking Commission. 

Answer D Federal Reserve Board.

Back

US Treasury Department.

Front

Which financial product typically pays the highest rate of interest?   

Answer A Savings account 

Answer B Money market account 

Answer C Certificate of deposit 

Answer D Common stock

Back

C. Certificate of deposit

Front

When James received his paycheck, he planned to cash it at a check cashing store.  You advise him to cash it at his own bank if possible. Why?   

Answer A They typically require a two day waiting period before giving cash 

Answer B They typically charge high fees 

Answer C There is likely to be a ceiling on the size of the check he can cash 

Answer D They generally require a co-signor

Back

B They typically charge high fees

Front

Pat has a savings account and a car loan from a not-for-profit financial institution owned by its members.  She is probably a member of what type of financial institution?   

Answer A Credit union 

Answer B Commercial bank 

Answer C Savings and loan association 

Answer D Investment club

Back

A Credit union

Front

Consumer finance companies, which are often advertised on TV, are also known as:   

Answer A Banks 

Answer B Savings and loan associations 

Answer C Small loan companies 

Answer D Purchase loan lenders

Back

C Small loan companies

Front

Joan wants to open a checking account and wonders if checking accounts pay interest.  How would you answer her question?   

Answer A All checking accounts pay interest 

Answer B Some types of checking accounts pay interest 

Answer C Checking accounts never pay interest 

Answer D Checking accounts pay interest if the account balance does not fall below $300.00

Back

B Some types of checking accounts pay interest

Front

Banks use savings account deposits to:   

Answer A Make their services and products attractive for new depositors 

Answer B Pay for employee special projects 

Answer C Give loans to consumers and businesses 

Answer D Improve the quality of life in low-income communities

Back

C Give loans to consumers and businesses

Front

The term used to describe the ease and speed with which you can convert savings or an investment to cash is:   

Answer A Convertibility 

Answer B Principal 

Answer C Liquidity 

Answer D Rate of return

Back

C. Liquidity

Front

You have a checking account balance of $100 and you deposit a personal $200 check from your brother in your checking account. When will you be able to withdraw $150 in cash?   

Answer A The same day as the $200 deposit 
Answer B 3 to 7 days later, depending on your bank's check clearance policy 

Answer C After receiving a checking account statement at the end of the month 

Answer D On the day you make your next deposit

Back

B 3 to 7 days later, depending on your bank's check clearance policy

Front

Margaret wants to store a valuable coin collection and important papers. Generally, consumers should:   

Answer A Store valuables in a cabinet at home 

Answer B Rent a safe deposit box for their valuables 

Answer C Hand valuables over to their attorney 

Answer D Store valuables in locked drawer

Back

B Rent a safe deposit box for their valuables