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.

Which financial product may pay a dividend?

• Savings account
• Money market account
• certificate of deposit
• common stock

The financial institution where Ms. Sanchez has her checking account will continue to pay out money for the checks she writes as long as:

• She uses checks from her checkbook
• The financial institution has sufficient funds
• There is enough money in Ms. Sanchez's account to cover the amount of the checks
• She maintains a good record of deposits and handles her account responsibly

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?

• Credit union
• Commercial bank
• savings and loan association
• investment club

Which financial product typically pays the highest rate of interest?

• Savings account
• Money market account
• certificate of deposit
• common stock

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

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

A person is depositing $20 in cash and a check for $50. On the checking account deposit slip, the person should�

• include the reason that both cash and a check are being deposited.
• indicate what bank issued the check that is being deposited.
• indicate the amount of money that is currently in the checking account as well as in a savings account to cover the check.
• list the cash deposit separately from the check as well as the total of the deposit.

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

• All checking accounts pay interest
• Some types of checking accounts pay interest
• Checking accounts never pay interest
• Checking accounts pay interest if the account balance does not fall below $300.00

When a person is reconciling a checking account and notices that the balance in the checkbook does not match the balance on the statement from the bank, which action is it appropriate for the person to take first?

• Determine that checks already written have cleared
• Deposit sufficient funds to adjust the balance in the checkbook to match the bank's balance.
• Adjust the balance in the checkbook so it is the same as the bank's balance.
• Notify the bank in writing to adjust the statement.

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