Banking

What is a bank?

• A business that allows customers a safe place to deposit money and write checks, save money, and obtain credit cards

• A business that acts as a "financial intermediary" between depositors wishing to make money on their money and customers looking to borrow money

• A business that sells services such as loans for cars, mortgages, businesses

• All of the answers are correct

Banks create money by taking in deposits, paying _______ on savings accounts, and charging interest on ______.

• interest, CD's

• loans, interest

• interest, loans

• debt, loans

Taking more money out of your account than is available​ is called?

• Overdraft

• Deposit

• Investment

• Balance

What is the term for the amount of money required to open an account?

• Maximum Balance

• Overdraft Balance

• Minimum Deposit

• Maximum Deposit

What agency insures your deposits in banks?

• IRS

• FDIC

• FED

• FICA

The FDIC insures accounts up to...

• $250

• $2,500

• $25,000

• $250,000

How does the FDIC help prevent a bank from failing?

• They help banks find new customers to take out large loans.

• They insure the deposits in the bank to avoid "bank runs" as seen after the 1929 Stock Market Crash

• They promote the banks through advertising and create new business for the bank.

• They pass laws in Congress to allow the banks to charge more in interest.

Which of the following is not a type of banking institution?

• Credit Union

• Online Bank

• Payday Lender

• Retail Bank

What is a financial institution owned by its members called?

• Online Bank

• National Bank

• Retail Bank

• Credit Union

What is one difference between Banks and Credit Unions?

• Banks have Checking accounts and Credit Unions have Savings Accounts
• Banks are for profit.  Credit Unions are Non-profit.
• Banks can give loans and Credit Unions cannot
• Credit Unions allow everyone to join and Banks are selective