Bus Found Chapter 14 - Banking

Which is best suited for saving money over a period of years?

• certificate of deposit

• checking account

• demand deposit

• mortgage loan

Credit cards allow you to

• spend only the amount in your account

• borrow money for a short term

• protect your checks from thieves

• transfer money between accounts on-line

Which is not a problematic financial business?

• savings and loan association

• pawnshop

• check cashing outlet

• rent-to-own centers

The Federal Deposit Insurance Corp (FDIC) insures depositors against losing their money in case of a ____.

• lost debit card

• stolen paycheck

• bank failure

• death in the family

Compared with commercial banks, credit unions generally offer ___.

• higher interest rates on loans

• fewer financial services

• higher interest on savings

• lower fees and loan rates

To earn high interest rates on a certificate of deposit (CD) , you much accept all of the following EXCEPT ___.

• leaving money in for the term of deposit

• complete a monthly bank reconciliation

• pay a penalty when money is withdrawn early

• deposit a minimum amount

In which kind of savings plan does the interest rate vary from month to month?

• regular savings

• certificate of deposit

• money market

• savings bond

If you deposit $100 in an account with an annual interest rate of 6% compounded monthly, after 12 months you will have ______.

• $6

• $6.18

• $160

• $106.18

When writing a check, include all of the following EXCEPT ___.

• the current date

• the name of the payee

• your signature on the front

• an endorsement on the back

The first step in balancing a checkbook is ___.

• subtracting fees on the bank statement from the checkbook balance

• comparing checks in the check record with those on the statement

• adding interest earned to the checkbook balance

• adding recent deposits to the bank statement balance