Banking and Financial Services

You can store valuables at a bank by purchasing the use of a

• safe deposit box

• post office box

• padlock box

• strong box

6. Almost ___________________ percent of U.S. banks are FDIC members.

• 50

• 90

• 75

• 99

This nondeposit financial institution specializes in making loans for long-lasting or durable goods, such as cars and refrigerators, and for financial emergencies.

• consumer finance company

• pawnshop

• credit union

• investment company

Which of the following is NOT a deposit institution?

• mutual savings bank

• commercial bank

• check-cashing outlet

• savings and loan association

The paying of checks among different banks in different cities is called

• clearing

• reserving

• kiting

• bouncing

Mutual savings banks are organized mainly for

• business loans.

• check cashing.

• automobile loans.

• savings and home loans.

Except for some retirement accounts, the FDIC insures all accounts in the same name at each bank up to an amount of

• $2,500.

• $25,000.

• $250,000.

• $2,500,000.

Which type of checking account is probably the best choice

for someone who writes many checks per month?

• interest-earning checking account

• activity checking account

• regular checking account

• special checking account

An interest-earning checking account

• usually requires a lower monthly balance than regular checking accounts.

• generally pays very high interest rates.

• is a good choice if you are depositing a large amount of money.

• usually earns interest only if the account stays above the required amount.

You use a ____________________ card for ATM transactions.

• debit

• credit

• smart

• stored-value