Financial Institutions

The Garret family wants to take advantage of their state's

_______________ to pay for their child’s college tuition.

• CD

• 529 plan

• Roth IRA

• traditional IRA

Choose two answers.

Jeff wants to open a basic savings account. He should go to which two types of financial institutions to open the account.

• a financial services company

• a commercial bank

• an insurance company

• a trust company

• a credit union

Which financial institution is owned by its members?

• financial service company

• savings and loan association

• commercial bank

• credit union

Which financial institution offers high-risk loans?

• financial service company

• savings and loan association

• commercial bank

• credit union

Which financial institutions provides home mortgages?

• financial service company

• savings and loan association

• commercial bank

• credit union

Which financial institutions offers checking accounts?

• financial service company

• savings and loan association

• commercial bank

• credit union

Which two features does a basic savings account have?

• allows money

  transfers

• offers a higher

  interest rate

• allows ATM

  withdrawals

• has a maturity date

Which two features does a CD (certificate of deposit) have?

• allows money

  transfers

• offers a higher

  interest rate

• allows ATM

  withdrawals

• has a maturity date

Which would be the best retirement savings option for a 40-year old engineer whose employer offers a five percent contribution match?

• IRA

• 401(k)

• basic savings account

• money market account

The FDIC ruled that a company had violated the FTC Act. What penalty can the company expect?

• criminal charges

• merger with another financial institution

• a fine

• closure of operations