Banking Services and Credit Cards

Which of the following is a true statement about banking?

• Keeping your money at home instead of a banks prevents you from paying the interest fees that banks charge.

• It's generally safer to keep your money in a bank than to keep it at home.

• Most new businesses are forced to start without loans from banks.

• Most banks give their customers interest-free loans.

When you borrow money from a bank, where does that money come from?

• The accounts of the bank's customers.

• The bank's own business checking account

• A credit card company

• The federal government

How do banks make profits?

• By charging people interest to borrow money.

• By charging people interest to keep their money there.

• By charging a fee every time a customer writes a check or uses a debit card.

• None of the above - banks are nonprofit institutions

After writing a check for $172, your account is overdrawn by $31. How much money did you have in the account before you wrote the check?

• $203

• $141

• $172

• $131

What is the difference between a credit card and a debit card?

• A debit card is issued by a bank, a credit card is not.

• A debit card can only be used at an ATM, while a credit card can be used to by things at stores or online.

• A debit card takes money directly from your checking account,while using a credit card is a form of borrowing

• Debit card users must pay interest to banks; credit card users collect interest from banks.

What does ATM stand for?

• automatic transfer machine

• automatic talking machine

• automatic teller machine

• automatic time machine

A deposit account that can keep your money safe and from which you can easily withdraw funds at any time is called_____.

• a savings account

• a checking account

• a money market account

• a retirement account

What type of card allows you to spend or withdraw money you have in your bank account?

• Credit Card

• Debit Card

• Bank Card

• ID Card

What is the banking term for taking money from your account?

• debit

• deposit

• trust

• steal

What is the banking term for putting money in your account

• withdrawal

• credit

• investment

• writing a check