Banking/Checking Quiz

What is the primary reason banks are in business?

• To provide free services to the community

• To earn a profit

• To lend money without interest

• To store money without using it

Where does the money that banks lend to customers primarily come from?

• Government funds

• Private investors

• The deposits of other customers

• Printing new money

How do banks primarily generate profit?

• Through service fees only

• By charging interest on loans

• By investing in the stock market

• By owning real estate

What does FDIC stand for?

• Federal Deposit Insurance Corporation

• Federal Debt Insurance Company

• Financial Deposit Insurance Corporation

• Fiscal Deposit Insurance Committee

According to the learning material, up to what amount are most deposits insured by the FDIC?

• Up to $100,000

• Up to $200,000

• Up to $250,000

• Up to $300,000

Who benefits from the income of a credit union?

• The owner or owners

• The government

• The members and continued operation of the business

• External investors

Who are considered "members" in the context of a credit union?

• Any consumer

• People who share a common characteristic or qualification

• Shareholders of the union

• Employees of the union

Which organization insures deposits at credit unions?

• Federal Reserve

• Federal Depositors Insurance Corporation (FDIC)

• National Credit Union Association (NCUA)

• Securities and Exchange Commission (SEC)

What is bartering?

• An order to a bank to pay a specified sum

• Trading goods and services without using money

• Paper money and coins used for financial transactions

• A monthly record of all transactions of an account

What is a check?

• Paper money and coins used for financial transactions

• A monthly record of all transactions of an account

• An order to a bank to pay a specified sum to a business or person

• Trading goods and services without using money