Banks & Financial Institutions

The Federal Deposit Insurance Corporation (FDIC) insures account holder's accounts for up to _____.

• $100,000

• $150,000

• $200,000

• $250,000

Kim has chosen a financial Institution because it is affiliated with her employer. What type of financial institution does she have?

• Internet bank

• Credit Union

• Mutual savings bank

• Savings and loan association

John has just started a part-time job but he doesn't see any reason why he should use a financial institution. What are some reasons for John to use a financial institution?

• insure that he gets paid from his job

• allow him to keep more of the money from his paycheck

• allow him to spend more money than he currently makes

• allow him to cash checks, write checks, save money, and borrow money

Which is an example of a depository institution?

• Credit Union

• brokerage

• mortgage company

• investment company

Which savings institution has the benefit of the accounts being "share" accounts and interest rates may be higher?

• credit union

• savings and loan

• commercial bank

• mutual savings bank

The earnings on savings are measured by the rate or return, called the _____.

• the real return rate

• index rate

• return on inventory

• annual percentage yield

The least expensive, least time-consuming way to maintain a checking account without extra fees is to ____.

• use overdraft protection

• check your balance each time you write a check or use a debit card.

• regularly balance your account

• only use a debit card.

Sam keeps most of his money in a savings account for after high school. He does have a few, but not many, bills to pay. What type of account might be best for his needs?

• passbook savings

• Interest-bearing account

• economy checking

• basic checking