Banking & Financial Services Review

The Federal Reserve System (Fed) supervises and regulates member banks.

• True

• False

A cease-and-desist order is a written notice to the bank not to pay a check.

• True

• False

What type of deposit institution frequently has branch offices in shopping centers and grocery stores?

• credit unions

• savings and loan associations

• mutual savings banks

• commercial banks

What type of deposit institution accepts savings deposits and makes loans to members only?

• savings and loan associations

• commercial banks

• credit unions

• mutual savings banks

What type of deposit institution's profits are distributed in proportion to the amount of business each participant does?

• commercial banks

• savings and loan associations

• credit unions

• mutual savings banks

What type of deposit institution traditionally specializes in savings accounts and loans for home mortgages?

• commercial banks

• savings and loan associations

• credit unions

• mutual savings banks

A digital reproduction of an original paper check is known as a_____ check.

• canceled

• cashier's

• substitute

• certified

Which of the following is not a function of the Federal Reserve System (the Fed)?

• provides check clearing services

• holds deposits from banks

• provides investment accounts for individuals

• supervises and regulates banks

Writing a check for more than is in your account can result is a(n) _____.

• overdrawn account

• stop payment order

• canceled check

• postdated check

_____ are cards with embedded microchips that store data, such as prepaid amounts, account balances, transaction records, insurance information, and medical history.

• Stored-value cards

• Smart cards

• Debit cards

• ATM card