Banking (EPF12)

This type of financial institution is member owned

• Savings Bank

• Commercial Bank

• Payday lender

• Credit Union

FDIC insurance covers up to what dollar amount for depositors?

• $100,000

• $150,000

• $200,000

• $250,000

An internet only bank does not have any ...

• ATMs

• Physical branches

• Checking accounts

• Capacity to deposit checks

This type of business charges a flat fee + a % of the total amount of the check

• check cashing business

• pawn shop

• payday lender

• savings and loan

All of the following are benefits of having a checking account EXCEPT:

• safety

• bill pay

• week-long loans

• check cashing

Banks make most of their money between the interest rate given to depositors vs. the interest rate charged on loans. This is called ...

• the vig

• the spread

• the butter

• the academy

When a bank says that their savings account earns 3% interest, that typically means you will earn 3% interest over what period of time?

• Quarterly (every 3 months)

• Monthly

• Annually

• Daily

Your emergency fund should be at least:

• 1 year of gross pay

• 3 months of expenses

• 1 week of gross pay

• 2 weeks of expenses

Which of the following transactions may NOT be reflected on your account balance if you go online to check your balances?

• Automatic payment for your car loan paid two days ago

• ATM cash withdrawal from yesterday

• Debit card transaction from purchasing snacks at a local convenience store today

• Check that you mailed to your cousin for his birthday today

If I write a check for more money than I have in my account, my account is now _________________.

• overdrawn

• withdrawn

• post-dated

• closed