Banking Basics

Which of the following best describes a LOAN?

• Money borrowed that can be paid back if one feels like it.

• Money borrowed

• Money borrowed with the expectation of paying it back in a timely manner.

• Money gifted to someone with no expectation of payback.

Which Financial Institution is best described below: A not for profit members only institution known for their low interest loans.

• Bank

• Credit Union

• Savings & Loan

• Check Into Cash

Select the aspects below that apply to a Bank.

• Safely Secures Ones Money

• Charges Interest for Loans & Pays Interest on Savings Accounts

• Primarily Focuses on Home Loans

• For Profit Institution

True or False: A Savings & Loan provides customers with savings accounts and Mortgage (house) Loans

• True

• False

Which of the following is not a characteristic of a SAVINGS ACCOUNT?

• Safe place to store money

• Owners can write checks from the money in the account

• Money is protected by Federal Insurance

• Money gains interest over time

• Great way to save for something you want or an emergency

An account you can deposit money into and then write checks or use debit card to withdraw money is known as a ____________________.

• Money Market

• Checking

• Savings

• ATM

Which of the following is not a synonym for EXPENSES?

• Costs

• Wage

• Bills

• Expenditures

Which word below is defined as:

The cost required for something; the money spent on something

• Expenses

• Income

• Wants

• Teller

True or False:

Income can be defined as money paid to you for working, business or property.

• True

• False

Which of the following is not an appropriate form of Income?

• Running a Business

• Working a Job

• Taking Kadin's Lunch Money

• Renting or Selling Property