The Business of Banking (B1)

United 1st Credit Union is which type of financial intermediary?

• depository

• non-depository

Banks are non-profit businesses.

• True

• False

A business that acts as a middle-man by facilitating financial transactions between others

• corporate intermediary

• central finance department

• financial intermediary

• intermediate focus group

Whish asset is least liquid?

• cash in your wallet

• money in your checking account

• real estate

Creditworthy customers must have

• a good credit rating

• sufficient collateral

• ongoing income to make loan payments

• all of the answers listed are correct

Historically, who could use a commercial bank?

• only individuals

• only businesses

• both individuals and businesses

Who can use the services of a commercial business today?

• only individuals

• only businesses

• both individuals and businesses

Commercial banks must earn a profit to survive?

• True

• False

You can open a checking account at all of the following financial institutions EXCECT

• commercial bank

• central bank

• credit union

• retail bank

Which is NOT a way that banks keep your money safe?

• requiring you to physically come into the bank to access your money

• accurate record keeping

• identity theft protection

• examinations by federal and state bank authorities