Fin.Lit.-Chap.7-Banking

This is an independent agency that protects bank deposits, promotes consumer advocacy, and insures deposits.

• Finance Direct Insurance Company

• Federal Deposit Insurance Corporation

• Finance Department in Commerce

What is the maximum amount of money insured per depositor at a bank?

• $100,000

• $250,000

• $10,000

• $25,000

Anyone can use a check cashing service to cash checks.

• True

• False

Check cashing services are usually free.

• True

• False

Which one is a "Depository" Institution?

• Life Insurance Companies

• Investment Companies

• Finance Companies

• Commercial Banks

Which type of account has these 3 benefits: good rate of return, some check writing, and is insured. But, it also requires a minimum balance.

• Regular savings accounts

• Certificates of deposit (CDs)

• Money market accounts

• U.S. Savings Bonds

Which type of account has these 3 benefits: low minimum balance, ease of withdrawal, and is insured. However, the drawback is a low rate of return.

• Regular savings accounts

• Certificates of deposit (CDs)

• Money market accounts

Which type of account has these 3 benefits: guaranteed rate of return for time of CD and is insured. However, 2 drawbacks are: possible penalty for early withdrawal and minimum deposit.

• Regular savings accounts

• Certificates of deposit (CDs)

• Money market accounts

Banks offer only one choice of checking account, called a "regular checking account".

• True

• False

There are 4 things you need to consider when evaluating what Type of Checking Account (not the Bank) to choose: Restrictions, Interest, Special Services, and _____________?

• Fees and Charges

• Color of your checks

• Deposit slips

• Direct Deposit