4.1 Banking Self Check

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

• Banks provide only savings accounts, while credit unions provide only checking accounts

• Banks are for-profit organizations, while credit unions are cooperative businesses owned by their members

• Banks are owned by their members, while credit unions are owned by shareholders

• Banks are non-profit organizations, while credit unions are for-profit organizations

What are some benefits of having an account at a bank or credit union?

• All of the above

• Grows money through the power of compound interest

• Establishing a financial relationship for future banking services

• Avoiding the risk of carrying around a lot of cash

Which of the following is a locally owned and operated for-profit financial institution?

• Credit Union

• Commercial Bank

• Community Bank

• Deposit - Only Bank

Which of the following is the maximum amount of money insured by the federal government (FDIC) per depositor per account?

• $100,000
• $250,000
• $500,000
• 1 million dollars

Some checking accounts earn interest and some do not

• True

• False

1. Which of the following statements is TRUE about overdraft fees?

• 1. You are legally required to have overdraft protection for your account

• 1. They are charged if you fail to meet the minimum balance requirement

• 1. You are charged when more money is withdrawn from your account than it has available 

• 1. They are a one-time payment made by the bank to the account holder

2. All of the following are ways that you could potentially avoid a monthly maintenance fee on your account EXCEPT… 

• 1. Meeting a monthly minimum balance requirement

• 1. Only banking online instead of using physical bank locations

• 1. Having both a checking and savings account with the same bank

• 1. Finding a bank that offers accounts with no monthly maintenance fee

3. All of the following are ways to avoid ATM fees EXCEPT… 

• 1. Avoiding out of network ATMs

• 1. Finding a bank that reimburses you for ATM fees

• 1. Using your debit card instead of withdrawing cash to make a purchase

• 1. Withdrawing money from your savings account instead of your checking account

2. One difference between a checking account and a savings account is that…

• 1. Checking accounts typically offer higher interest rates

• 1. Savings accounts offer more flexibility for daily purchases

• 1. Checking account balances will typically change frequently

• 1. Savings accounts usually have a debit card and checks