Banks & Financial Institutions

Which of the following is the most significant difference between commercial banks and credit unions?

• A) How they pay interest on deposits

• B) How they charge interest on loans

• C) How they are regulated by the government

• D) What types of deposits they accept

Credit unions, savings banks, and investment companies all serve a similar function.

• False

• True

The interest rate that banks charge for loans they make is higher than the interest rate they pay for customers' deposits.

• True

• False

Identify all depository institutions bellow:

• A commercial bank

• An investment company

• A credit union

• An insurance company

Which of the following is a written order from you to your bank instructing your bank to pay money from your account to another party?

• A) A check

• B) A deposit slip

• C) A certificate of deposit

• D) A debit card

Which of the following would be the LEAST secure way to send payment to another person or business through the mail?

• A) A personal check

• B) A cashier's check

• C) A money order

• D) Cash

Which of the following is the main difference between a NOW account and a typical checking account?

• A) A NOW account pays a small amount of interest on the money in the account.

• B) A typical checking account pays a small amount of interest on the money in the account.

• C) A NOW account charges a small amount of interest for the money in the account.

• D) A typical checking account charges a small amount of interest for the money in the account.

A ________ enables you to withdraw cash from your account at ATMs or to pay directly for goods or services at many businesses.

• A) credit card

• B) debit card

• C) NOW card

• D) check register

PIN stands for ________.

• A) payment information number

• B) personal information number

• C) personal identification number

• D) payment identification number

You will need a PIN to use a(n) ________.

• A) checking account

• B) debit card

• C) NOW account

• D) personal check