Purpose of Financial Institutions

Which situation shows a financial institution as a borrower?

• Abby uses a credit card to pay for an online purchase

• Kevin borrows money to pay for a course as a dental assistant

• Luis deposits his paycheck into a savings account

• Hailey takes out a loan to help her buy a house.

Which of the following is NOT a service a bank provides

• It makes loans to other customers.

• It provides credit cards for its customers

• Customers can deposit and withdraw money from their accounts

• Helps you loan money to your friends

Which is a good reason to use a Financial Institution?

• Putting your allowance in a safe place

• Lending your friend $5

• Borrowing money to buy a new toy

Which of the following is NOT a good reason to use a financial insitution

• Borrowing money for college

• Placing your birthday money in an account

• Letting your friend borrow $10

• Taking out a loan to purchase a home

Which of these is NOT provided by a financial institution such as a bank or credit union? 

• lending money to people and businesses
• paying you interest on money in your savings account
• keeping money safe
• paying your bills

Lucy wants to deposit her weekly allowance into a savings account. What is one good reason to to put her money in a savings account?

• it is hard to withdraw and deposit money into it

• it pays interest

• the money can be lost or stolen

• you must have a lot of money to open a savings account

A card that uses money directly from your bank account

• Debit Card 
• Credit Card 
• Pokemon Card 
• Baseball Card 

Tags

CCSS.6.NS.B.3

What does the word DEPOSIT mean in regards to money and banks.

• to put money or other valuables in a safe place
• to spend
• to save
• to take money or valuables out of a safe place

Which of the following will a bank provide?

• Keep your money safe
• Pay your bills
• Put money into your account
• Balance your checkbook

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CCSS.6.NS.B.3

When you pay back a loan, you not only pay the amount you borrowed, you also pay it back with _____________

• Interest

• Deposit

• Withdrawal

• Checking