Wyatt CE 12c Quiz Review

How do financial institutions obtain funds to give loans to consumers?

• Customers deposit money into the financial institutions

• Government agencies loan money to the financial institutions.

• Local governments give tax revenues to the financial institutions.

• The Federal Reserve makes more money for financial institutions to loan.

How does a financial institution encourage savings?

• Advertisement

• Give away free prizes

• Provide a safe place for you to keep your money

• Pay Interest

Which of the following is NOT a financial institution?

• Realty company

• Savings and loans

• Credit unions

• Banks

Which type of private financial institution is created for members and is non-profit?

• credit union

• bank

• savings and loan

• internet bank

Private financial institutions act as intermediaries between savers and --?

• borrowers

• the government

• taxation

• businesses

What do financial institutions do with your deposits?

• make loans

• put it in their vault

• place it in other banks for safe keeping

• keep it in security boxes

Select all of the financial institutions-

• bank

• credit union

• savings and loan

• federal reserve system

Which type of private financial institution is created for members and is non-profit?

• credit union

• bank

• savings and loan

• internet bank

When Banks keep your money in a savings account

• They pay you interest

• You pay them interest

When Banks LOAN you money for things

• They pay you interest

• You pay them interest