Mid Unit 2 Quiz Most Missed F 19

The interest earned on $1,000 over 2 years at a 10% compound interest rate is:

• 20

• 40

• 200

• 210

A key difference between credit unions and banks is:

• Credit unions are usually member owned

• Bank debit cards are more widely accepted

• Banks usually pay higher interest on savings accounts

• All of the above

How does the FED help protect member banks and depositors?

• By insuring bank accounts up to $250,000

• The FED does not work to protect member banks and depositors

• By requiring banks to have a minimum amount of money on deposit

• By limiting the number of branches a member bank can have

John put $800 dollars in a savings account, what interest rate would he need in order for his money to double in eight years?

• 5%

• 7%

• 9%

• 10%

Which documents should be stored in a safe-deposit box?

• paychecks

• Birth Certificates

• checkbook statements

• copy of budget

A person has a car loan with a 10% interest rate. The loan would cost the least amount of money if it is paid back in

• 4 years

• 6 years

• 8 years

• 10 years

These are normally National or multi-state institutions

• Banks

• Credit Unions

• Both

At these institutions each account is insured up to 250,000

• Banks

• Credit Unions

• Both

When using a debit card, a person should

• record debit card purchases in her checkbook register

• keep her PIN in her wallet

• be aware that she has 30 days to pay for the purchase

• check her monthly credit statement to view debit activity

Why would the Fed work to keep interest rates low?

• To slow down economic growth

• To exercise their control over banks

• To encourage people to borrow

• To discourage people from investing