Banking Quiz

What are banks?

• Non-profit organizations

• Government agencies

• Private, for-profit businesses

• Charitable institutions

What services do banks provide?

• Storage of money

• Writing checks

• Making loans

• All of the above

How do banks earn money?

• By providing free services

• By investing in stocks

• By lending money

• By receiving government grants

Where do banks get the money to make loans?

• From their own profits

• From customer deposits

• From borrowing from other banks

• From donations

What is creditworthiness?

• The ability to store money in a bank

• The ability to repay a loan

• The ability to write checks

• The ability to invest in stocks

What are interest rates?

• The cost of using money provided by a loan

• The cost of opening a bank account

• The cost of writing checks

• The cost of borrowing from other banks

What is capital?

• The money, property, or other valuables that represent the wealth of a business or individual

• The money deposited in a bank account

• The money earned from interest

• The money borrowed from other banks

What is collateral?

• The money deposited in a bank account

• The money earned from interest

• The assets pledged by a borrower to secure a loan

• The assets owned by a bank

What is loan term?

• The period of time in which the loan must be repaid

• The period of time in which the loan interest is calculated

• The period of time in which the loan can be extended

• The period of time in which the loan can be canceled

What is the FDIC?

• A government agency that insures bank deposits

• A private organization that regulates banks

• A non-profit organization that provides loans

• A bank that offers a variety of services