Personal Finance Unit 4 Review

Another name for an overdraft fee is non-sufficient funds.

• True

• False

Outstanding checks are checks written by the account owner but have yet to be processed by the bank.

• True

• False

Which of the following insures checking accounts at a bank or a credit union? (you must choose more than one) HINT: there are two correct answers

• NAACP

• FDIC

• FTIC

• NCUA

Which part of the check is the least important?

• Memo lines

• Routing numbers

• Signature line

• Check number

Typically, a person must be a member of a credit union to use its financial services.

• True

• False

A bank is a not-for-profit financial institution

• True

• False

What are the characteristics of a credit union?

answer choices

• A not-for-profit financial institution

• Mortgages, debit and credit cards

• Member owned

• All of these are characteristics of a credit union

 Banks are often able to provide _______ than credit unions as a result of their larger scope and size.

• slightly better rates

• lower fees

• more access in general

• a smaller amount but more robust selection of accounts

The FDIC insures bank customer’s accounts up to

• $300,000

• $250,000

• $100,000

• unlimited amount

Money markets are similar to savings accounts, but with

• no limits on transactions

• a higher required minimum balance

• lower interest rates (APR)

• all of these