MoneyPower - Banking #1

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.

Doug wants to buy a car in two months, but does not have enough money. What is the best way for Doug to get the money he needs?

• Purchase a certificate of deposit

• Take out a cash loan

• Open a money market account

• Apply for a thirty year mortgage

Money orders are:

• Distributed by the Treasury Department

• Available for no fee at banks and retail stores

• A purchased certificate to pay a specified amount to a specific payee

• A certified check used to pay a specified amount to a specific payee

How can individuals be prepared for losing their job or having a large medical expense?

• Maintain a checking account with sufficient funds

• Pay credit card bills on time

• Prepare a budget

• Save at least three months of income

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 person is depositing $20 in cash and a check for $50. On the checking account deposit slip, the person should

• include the reason that both cash and a check are being deposited.

• indicate what bank issued the check that is being deposited.

• indicate the amount of money that is currently in the checking account as well as in a savings account to cover the check.

• list the cash deposit separately from the check as well as the total of the deposit.

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.

"The Fed" is short for:

• The Federal Reserve System

• Congress

• FBI

• The Federal Deposit Insurance Corporation

The most liquid type of investment is:

• A corporate bond

• A certificate of deposit

• Real estate holding

• A money market account

Financial services and products generally offered by banks and credit unions include:

• Real estate listings

• Savings and loans

• Legal services

• Business plans