Money Power Banking III

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

The best reason for depositing money in a bank or credit union savings account instead of keeping your money "under the mattress" is that:

• Money deposited in savings accounts are F.D.I.C. insured

• Most savings accounts earn a guaranteed rate of interest

• Most savings accounts come with a free credit card

• Money in a savings account can be accessed any time during the day or night

"The Fed" is short for:

• The Federal Reserve System

• Congress

• The Federal Bureau of Investigations (FBI)

• The Federal Deposit Insurance Corporation

Which financial product typically pays the highest rate of interest?

• Savings account

• Money market account

• Certificate of deposit

• Common stock

Which financial product has the most predictable income?

• Stock

• Real estate

• Certificate of deposit

• Option/future contract

Patty is selling her car through a newspaper advertisement. When she finds a buyer, she wants a form of payment which is guaranteed to be good. Which form of payment should she avoid?

• Certified check

• Cash

• Cashiers check

• A check

A teenage boy has opened a checking account. He is surprised to find that though he is getting a written bank statement each month he is not getting his cancelled checks returned. The teenager should be aware that the reason cancelled checks are NOT returned is to

• protect him from providing opportunities for forgery

• insure that he does not receive important materials he is likely to lose.

• lessen the bank's need to maintain records of check transactions.

• save the bank money associated with returning copies of these checks.

Safe-deposit boxes are:

• A free benefit for accounts with deposits starting at $50,000

• Safe and can be accessed only by the owner of the box

• Available at all banks

• Convenient and accessible at any hour of the day or evening

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

A blank endorsement on a check:

• Has no effect on the check

• Cancels the check

• Creates a check that can be cashed by anyone

• Restricts the use of the check