Financial Literacy Chapter 9 Vocabulary Quiz

What is the purpose of the Federal Deposit Insurance Corporation (FDIC)?

• To insure deposits in bank accounts up to $250,000

• To offer overdraft protection to account holders

• To regulate the operations of credit unions

• To provide financial services to individuals and businesses

What is the purpose of the National Credit Union Administration (NCUA)?

• To offer overdraft protection to account holders

• To regulate the operations of retail banks

• To provide financial services to individuals and businesses

• To insure deposits in credit unions up to $250,000

Who are considered unbanked individuals?

• People who have savings or checking accounts but still use alternative financial products and services

• People who don't have bank accounts

• People who use online banking for all their transactions

• People who have overdraft protection on their accounts

Who are considered underbanked individuals?

• People who use online banking for all their transactions

• People who don't have bank accounts

• People who have savings or checking accounts but still use alternative financial products and services

• People who have overdraft protection on their accounts

What are retail banks?

• Financial institutions that offer overdraft protection as their main service

• Financial institutions that operate solely online with no physical location

• Nonprofit financial institutions that are owned and operated by their members; offer deposit accounts and lending services similar to a retail bank but at a lower cost

• For-profit financial institutions that accept deposits and offer a variety of deposit accounts and financial services

What are credit unions?

• Financial institutions that offer overdraft protection as their main service

• Financial institutions that operate solely online with no physical location

• Nonprofit financial institutions that are owned and operated by their members; offer deposit accounts and lending services similar to a retail bank but at a lower cost

• For-profit financial institutions that accept deposits and offer a variety of deposit accounts and financial services

What are online banks?

• For-profit financial institutions that accept deposits and offer a variety of deposit accounts and financial services

• Financial institutions that offer overdraft protection as their main service

• Nonprofit financial institutions that are owned and operated by their members; offer deposit accounts and lending services similar to a retail bank but at a lower cost

• Financial institutions that operate solely online with no physical location

What is overdraft protection?

• An option offered by banks to cover overspending an account and then charge a fee for it

• A penalty charged if the account holder spends more than their account balance, causing the available balance to go below zero

• How quickly you can access the money in an account or the value of an asset without a penalty or fee

• The process of making sure you and the bank agree on how much money is in your checking account

What is an overdraft fee?

• The process of making sure you and the bank agree on how much money is in your checking account

• A penalty charged if the account holder spends more than their account balance, causing the available balance to go below zero

• An option offered by banks to cover overspending an account and then charge a fee for it

• How quickly you can access the money in an account or the value of an asset without a penalty or fee

What does liquidity refer to in banking?

• The process of making sure you and the bank agree on how much money is in your checking account

• How quickly you can access the money in an account or the value of an asset without a penalty or fee

• An option offered by banks to cover overspending an account and then charge a fee for it

• A penalty charged if the account holder spends more than their account balance, causing the available balance to go below zero