Unit 5 Banking

A _____ is a full service for profit institution that provides financial services.

• commercial bank or retail bank

• savings and loan

• credit union

A _____ is a financial institution that specializes in savings accounts and mortgage loans.

• commercial bank

• savings and loan

• credit union

A _____ is a nonprofit financial institution that is owned by its members.

• commercial bank

• savings and loan

• credit union

Commercial banks and S&Ls are protected by the

• FDIC

• NCUSIF

The FDIC provides insurance up to $_____ per person per bank in each account category.

• $250,000

• $500,000

• $125,000

Credit unions are protected by

• FDIC

• NCUSIF

What is the big disadvantage of using check cashing services or payday lenders?

• higher interest rate and fees

• no disadvantage same as using a bank or credit union

The Federal Reserve Act was put into law so problems like those that occurred during the Banker's Panic of 1907 would not happen again.

• True

• False

The FED (choose all that apply)

• prints money.

• controls how much money is available.

• adjusts long term interest rates.

• helps steer the economy in the right direction by keeping prices stable and promoting high employment.

The FEDs Board of Governors ______.

• ensures banks behave responsibly

• collect data and research on the economy, keep an eye on the banks in their region, and provide financial services to other banks including the US government

• decides the nation's policies about the money supply and interest rates charged to banks