Financial Institutions and Services

Tyler, Cedric, and Mabry are planning to start a food truck business after graduation. Tyler is interested in understanding the role of banks in their venture. Can you help him understand what a bank is?

• A financial institution that accepts deposits from Tyler's customers and makes loans to their food truck business

• A not-for-profit financial institution that provides a wide array of financial services to Cedric

• An account at a bank that allows Mabry to make deposits and withdrawals

• Money electronically sent to Tyler's food truck business bank account

What is a credit union?

• A financial institution that accepts deposits and makes loans

• A not-for-profit financial institution that provides a wide array of financial services

• An account at a bank that allows you to make deposits and withdrawals

• A cooperative financial institution owned by its members

Henry has recently started working and wants to manage his salary. He is considering opening a checking account but is unsure about what it is. Can you help him understand what a checking account is?

• A financial institution that accepts deposits and makes loans

• A not-for-profit financial institution that provides a wide array of financial services

• An account at a bank that allows Henry to make deposits and withdrawals

• Money electronically sent to Henry's bank account

Amos recently started his first job at a local bookstore and his employer, Joshua, asked him how he would like to receive his salary. Cedric, a senior employee, suggested him to opt for direct deposit. Can you help Libbee understand what direct deposit is?

• A financial institution that accepts deposits and makes loans

• A not-for-profit financial institution that provides a wide array of financial services

• An account at a bank that allows you to make deposits and withdrawals

• Money electronically sent to your bank account

Libbee borrowed some money from Tyler. What is the fee charged by Tyler for the use of his money called?

• Interest

• A not-for-profit financial institution that provides a wide array of financial services

• An account at a bank that allows you to make deposits and withdrawals

• Money electronically sent to your bank account

What is a savings account?

• A fee charged by a lender for the use of money

• A not-for-profit financial institution that provides a wide array of financial services

• An account at a bank that allows you to make deposits and withdrawals

• An account at a bank (sometimes called a share savings account at a credit union) used to set aside money and that pays you interest

Libbee wants to purchase a new house. She is thinking about getting a mortgage. What does this imply?

• She is borrowing money that is expected to be paid back with interest

• She is considering a financial institution that accepts deposits and makes loans

• She is thinking about an account at a bank that allows her to make deposits and withdrawals

• She is expecting money to be electronically sent to her bank account

Joshua has just received his first salary from his new job. He wants to ensure its safety and decides to deposit it in his bank account. What is this action referred to as?

• Money placed into a banking account

• A fee charged by a lender for the use of money

• A not-for-profit financial institution that provides a wide array of financial services

• Money electronically sent to your bank account

Cedric is at a game store and wants to buy the latest FIFA game, but he realizes he doesn't have enough cash with him. He decides to use a card issued by his bank. What is this card called that Cedric is using?

• A card issued by a bank allowing the holder to purchase goods or services on credit

• A financial institution that accepts deposits and makes loans

• An account at a bank that allows you to make deposits and withdrawals

• Money electronically sent to your bank account

Libbee has just received a large inheritance from her late grandmother. She wants to ensure its safety and decides to put it in a bank. What is this action known as?

• Depositing money into a bank account

• Charging a fee for the use of money

• Providing a wide array of financial services

• Sending money electronically to a bank account