PF: Chapter 8 Lesson 2 Types of Financial Institutions

What is the main purpose of banks?

• To offer financial services to individuals and businesses

• To provide loans and mortgages

• To keep money safe in checking and savings accounts

• To provide credit and debit cards

Which type of bank has physical buildings where checking and savings accounts are held?

• Retail banks

• Credit unions

• Online banks

• Investment banks

What is a benefit of choosing a small community bank?

• Multiple locations in cities and towns

• Personalized customer service

• Lower fees

• Higher interest rates on savings

What is a requirement for membership in a credit union?

• Being a teacher

• Serving in the military

• All of the above

• Working for a specific company

What is a characteristic of online banks?

• Physical branch locations

• In-person customer service

• Digital banking services

• Higher interest rates on loans

Which type of bank should you choose depends on:

• The number of branches they have

• The fees they charge

• The level of customer service they provide

• All of the above

Apart from banks, what are some other financial services that offer money-management services?

• All of the above

• Financial advisement companies

• Investment service institutions

• Investment banks

What are some services provided by wealth management firms?

• All of the above

• Market advice

• Estate planning

• Investment strategies

What is a bank's primary source of income?

• Account fees

• Overdraft fees

• Interest on loans

• ATM fees

Which bank service should you avoid if you want to avoid debt?

• All of the above

• Car loans

• Personal loans

• Credit cards