W!SE Practice: Banking

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

• US Treasury Department.
• Federal Deposit Insurance Corporation. (FDIC).
• State Banking Commission.
• Federal Reserve Board.

The best suggestion you gave a friend who is writing a check for the first time is:

• Date the check because it is usually proof of payment
• Use pencil to permit changes
• Make the check payable to cash
• Use the checkbook stub or register to keep a record of the date you write the check

The National Credit Union Administration (NCUA) insures accounts in:

• Credit unions
• Commercial banks
• Brokerage firms
• Savings banks

Troy has $50 a month transferred electronically from his checking account to his savings account. This is an example of:

• An installment payment
• A savings plan
• An ATM transaction
• A debit card transaction

Financial services and products generally offered by banks and credit unions include:

• Real estate listings
• Savings and loans
• Legal services
• Business plans

A blank endorsement on a check:

• Has no effect on the check
• Cancels the check
• Creates a check that can be cashed by anyone
• Restricts the use of the check

Safe-deposit boxes are:

• A free benefit for accounts with deposits starting at $50,000
• Safe and can be accessed only by the owner of the box
• Available at all banks
• Convenient and accessible at any hour of the day or evening

Which financial product typically pays the highest rate of interest?

• Savings account
• Money market account
• Certificate of deposit
• Common stock

What action should a person take who must make a tuition payment at the end of August each year?

• Decide how much money will be needed and then place 1/12th of that amount in a separate account each month.
• Divide the total amount of money that will be needed into 12 equal parts and invest that amount in stocks.
• Obtain a short- term collateralized loan for the needed amount of money.
• Plan to open a new credit card account that will be used to charge the needed amount of money.

The phrase used for putting money into a savings account is:

• Verifying the account
• Balancing the account
• Making a deposit
• Making a withdrawal