12_1 Unit 3 Banking Pt II Checking

Multiple Choice

This type of bank is non-profit and offers its members lower interest rates.

• Commercial bank
• Investment bank
• Credit union
• Traditional bank

Multiple Choice

What is another name for a traditional bank?

• Brick and mortar
• Fort Knox
• Old school
• The money store

Multiple Choice

The current amount of money in your bank account is called the...

• registered amount
• balance
• deposited amount
• statement

Multiple Choice

What are the two main types of accounts at banks?

• checking and balancing
• checking and savings
• checking and debit
• savings and borrowing

Multiple Choice

Interest is a fee charged...

• by a lender to a borrower
• by a borrower to a lender
• by a bank for writing a check

Multiple Choice

With an electronic transfer, money is transferred from one account to another without

• overdraft protection
• service charges
• any check or cash involved

Multiple Choice

In banking, what does ATM stand for?

• Automatic To Money
• At The Moment
• Asynchronous Transfer Mode
• Automated Teller Machine

Multiple Choice

When your check clears the bank, it has...

• been processed and the money transferred out of your account
• been inspected  and determined to be free of forgery
• been guaranteed for payment by federal deposit insurance
• is eligible to be cashed at a credit union

Multiple Choice

The piece of paper you need to deposit cash to add that money to your account is:

• a check

• a withdrawal slip

• a deposit slip

• a lien

Multiple Choice

Money in the United States is which type of money?

• fiat money

• representative money

• commodity money

• speculative money

Multiple Select

The Federal Reserve controls monetary policy in the United States, trying to control

• inflation, or money losing its purchasing power

• deflation, or money becoming more valuable

• money supply, the amount of money available in the economy

• the number of banking institutions in the nation

Multiple Choice

You get a bank statement every ________.

• day

• week

• month

• year

Multiple Choice

To avoid an overdraft (negative balance) on your account, you can _______.

• Keep writing checks

• Use the shopping feature

• Use the pay bill feature

• Transfer money from your savings

Fill in the Blanks

Multiple Choice

If your paycheck is sent directly to your bank, that is called ______________

• interest

• overdraft

• direct deposit

• FDIC insurance

Multiple Choice

A bank account that lets you take money out as often as you want is a

_______________ account

• savings

• checking

• CD

  (certificate of deposit)

• IRA (retirement)

Multiple Choice

Your money is safe in the bank even if the bank fails ...

• if the bank account is FDIC insured
• is in any bank
• is in a large national bank (local banks are not safe)
• never

Explanation Slide...

The correct answer is 'Federal Deposit Insurance Corporation. (FDIC)'. Under the Bank Secrecy Act, banks are required to notify the FDIC if a deposit of $10,000 or more is made. This law helps to prevent and track illegal activities such as money laundering.

Multiple Choice

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

• Federal Deposit Insurance Corporation. (FDIC)

• State Banking Commission

• US Treasury Department

• Federal Reserve Board

Multiple Choice

If you write checks for more than you have in your checking account, your account...

• cannot have outstanding transactions
• will be overdrawn
• will be automatically reconciled
• does not meet credit union regulations

Multiple Choice

A direct deposit...

• cannot be paid by credit unions
• cannont be expressed as a percentage 
• is another name for compound interest
• goes to your account without using a check

Multiple Choice

Adding money to your account is called a...

• credit
• deposit
• debit
• withdrawl

Multiple Choice

The current amount of money in your bank account is called the...

• registered amount
• balance
• deposited amount
• statement

Multiple Choice

This type of bank is non-profit and offers its members lower interest rates.

• Commercial bank
• Investment bank
• Credit union
• Traditional bank

Multiple Choice

You can use a debit card to...

• access money in your checking account and transfer it
• accept a payroll deposit from your employer
• write a check
• get overdraft protection

Multiple Choice

What must be on a check?

• Your signature
• The current date
• The amount of money
• All of the above

Multiple Choice

The purpose of reconciling your bank account is to...

• convert simple interest to compound interest
• get overdraft protection
• verify that you agree with your bank on the balance
• verify that your account complies with federal law

Multiple Choice

True or False: You can withdraw money from an ATM at any time.

• True
• False

Multiple Choice

A(n) ____________ is a fee a bank charges you for having an account.

• service charge
• debit
• overdraft fee
• credit

Multiple Choice

This organization federally insures deposits in banks up to $250,000.

• IRS
• FBI
• FDIC
• SEC

Multiple Choice

A document an account holder uses to track their deposits and withdrawals.

• Check Register
• Bank Statement
• Check Card

Multiple Choice

A document produced by the bank that tracks withdrawals, deposits, and interest earned.

• Bank Statement
• Check Register
• Certificate of Withdrawals
• Certificate of Deposits