Banking Basics

What is the main difference between a bank and a credit union?

• Banks are for-profit companies, while credit unions are non-profit organizations.

• Banks are non-profit organizations, while credit unions are for-profit companies.

• Banks are privately-owned companies, while credit unions are member-owned organizations.

• Banks are member-owned organizations, while credit unions are privately-owned companies.

Which of the following is a benefit of using financial institutions?

• Limited access to cash

• Privacy concerns

• Direct deposit income

• Pay interest and fees

What are some cons of using financial institutions?

• Convenience and direct deposit income

• Better access to loans and check-cashing

• Limited access to cash and privacy concerns

• Earning interest and paying fees

Which of the following is an example of a non-bank institution?

• Payday loan service

• Foreign transaction fee

• Deposit slip

• Bank statement

What is an Automated Teller Machine (ATM) used for?

• Electronically depositing, withdrawing, and transferring money

• Making electronic monetary transactions (EMTs)

• Processing checks easier

• Recording all transactions for a bank account

REVIEW: What is the difference between gross and net income?

• gross is before taxes, net is after

• gross is after taxes, net is before

REVIEW: Net income is the same as _____.

• gross

• disposable

• discretionary

• pre-tax

REVIEW: If you have a Roth retirement plan, when will you pay taxes?

• upon retirement

• throughout your life

• never

• only the month in which you open the account