Fin Lit - Financial Institutions, Checks and Check Writing

A ____ is a financial intermediary that accepts deposits, makes loans, and offers checking accounts.

• bank

• payday lender

• federal reserve

• brokerage firm

Banks earn _____ on their loans, and with that money they pay _____ to their depositors, cover their own operating costs, and earn a profit. (Same word for both blanks.)

If a bank does fail, federal ____ insurance will cover up to $250,000 per account.

• homeowners'

• deposit

• life

• bank

The entity that insures bank customers up to $250,000 per account is the ____.

• CPSC

• SEC

• FDIC

• FTC

Owned by members or employees of a local employer

• Bank

• Credit Union

• Both

Which economic institution is NOT for profit. It is for the it's members?

• Banks

• Credit Unions

• Insurance companies

Which economic institution is for Profit?

• Banks

• Credit Unions

• Cooperatives

Banks and credit unions DO NOT allow persons to visit branch , make withdraw and deposits

• True

• False

Most banks and credit unions also issue credit cards and offer the same type of loans, such as personal loans, mortgages, auto loans and student loans.

• true

• false

True or False: You don't need an ID when opening a bank account?

• True 
• False