Wise Banking Questions

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

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?

• They typically require a two day waiting period before giving cash

• They typically charge high fees

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

• They generally require a co-signor

Travelers checks, often used for vacations:

• Are equivalent to credit cards

• Are free at most banks

• Function as cash and are easily replaced if lost

• Are FDIC insured

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

• Verifying the account

• Balancing the account

• Making a deposit

• Making a withdrawal

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

• Convertibility

• Principal

• Liquidity

• Rate of Return

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

A bank Certificate of Deposit is a:

• Savings instrument that requires a deposit for a period of time during which the saver can withdraw money from the plan at any time without a penalty

• Savings instrument that requires a deposit for a period of time during which there is a penalty for withdrawals

• Cash deposit in a savings account that earns interest

• Certificate for deposits that are issued for half the face value

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

Which financial product can you buy for $25, is safe, and will be worth $50 at a future date?

• Series EE savings bond

• Certificate of deposit

• 50 shares of ABC Co. stock

• ABC Co. bond

The Fed" is short for

• The Federal Reserve System

• Congress

• FBI

• The Federal Deposit Insurance Corporation