Banking Quiz

What is the main goal of a financial institution?

• To collect more interest than they pay out

• To provide free services

• To have the most branches

• To give away money to customers

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

• Credit unions have members who are part owners

• Credit unions serve both individuals and businesses

• Banks are not-for-profit organizations

• Banks focus primarily on individuals

What is the maximum amount insured for deposits by the Federal Deposit Insurance Corporation?

• $100,000

• $250,000

• $500,000

• $1,000,000

What is the purpose of endorsing a check?

• To make it payable to a specific person or organization

• To make it invalid

• To allow anyone to deposit it

• To restrict what can be done with the check

What is the main difference between an ATM card and a debit card?

• Debit cards can only be used at ATM machines

• ATM cards can be used for store purchases

• ATM cards are linked to credit card companies

• Debit cards can be used for store purchases and online transactions

What is an overdraft in banking?

• When a transaction is made for less than what is in the account

• When a bank covers a transaction for free

• When a bank charges a fee for a transaction

• When a transaction is made for more than what is in the account

What can be done through online banking?

• Checking balances, transferring money, and setting up bill payments

• Only setting up bill payments

• Only transferring money

• Only checking account balances

What is the benefit of direct deposit for a paycheck?

• The money is available at least one day prior to the pay day

• The money is not electronically transferred

• The money is available one day after the pay day

• The money is not available for immediate use

What is identity theft in the context of banking?

• All of the above

• When someone opens accounts using your information

• When someone makes purchases out of your account

• When someone steals your identity

What should you consider when shopping for a bank or credit union?

• Their locations and hours of operation

• Their interest rates

• Their minimum balance requirements

• All of the above