PF: Chapter 8 Lesson 1 The Purpose of Banks

What is the purpose of financial service providers like banks?

• To offer credit cards and personal loans

• To provide bad customer service

• To help you protect, access, and manage your money

• To earn compound interest on your money

What does it mean if a bank is insured by the FDIC or NCUA?

• Your money is insured only if the bank is shut down

• Your money is insured up to a quarter of a million dollars

• Your money is at risk and not insured

• Your money is safe and insured up to $250,000

Why is it better to keep your money in a bank rather than under your bed?

• Your money is more secure and insured in a bank

• Your money is more accessible under your bed

• A bank account helps you spend and save money

• A bank account charges high and unexpected fees

What is one of the common reasons people give for not having a savings or checking account?

• Distrust due to bad customer service

• All of the above

• Lack of financial literacy

• Unemployment and job loss

Why should you avoid using alternative financial products or services?

• They don't meet your needs

• They take advantage of your situation

• They are offered by predatory lenders

• All of the above

What should you do to avoid paying ridiculous fees and costs when choosing a bank?

• Choose the bank with the most branches

• Open an account without understanding the terms

• Select the bank with the highest interest rates

• Do your homework and research different banks

What is the reading level of this quiz?

• Grade 12

• Grade 9

• Grade 10

• Grade 11

Which of the following is NOT a good reason for being unbanked or underbanked?

• Distrust due to bad customer service

• Having a negative financial history

• Lack of financial literacy

• Unemployment and job loss

What percentage of borrowers use the cash from a payday lender for regular monthly expenses?

• 90%

• 30%

• 50%

• 70%

What is the best way to manage your money?

• Avoid financial services altogether

• Keep it in a shoebox under your bed

• Open a bank account

• Use alternative financial products