G10, Financial Institutions and Your Money

What does the Federal Deposit Insurance Corporation (FDIC) provide?

• Loan guarantees

• Investment advice

• Credit counseling

• Deposit insurance

What is a secured loan backed by?

• Interest rates

• Credit score

• A promise to repay

• Collateral

Which of the following is a positive aspect of credit cards?

• They make you feel richer than you are

• They offer fraud protection

• They make it easy to pile up debt

• They carry high interest rates

What is a demand deposit account (DDA)?

• An account with a fixed deposit term

• An account whose funds can be removed without prior approval

• An account exclusively for loans

• An account that offers high interest rates

What factor affects your ability to get a loan?

• Whether you have collateral

• Your knowledge of the stock market

• Your military service

• Your religion

What is the role of a commercial bank?

• To provide legal advice

• To insure deposits

• To accept demand deposits and make loans

• To offer non-profit services

What should you never do with credit card payments?

• Check for fraudulent transactions

• Use for online purchases

• Only pay the minimum monthly payment

• Pay on time

What is the primary function of a savings account?

• To provide loans

• To secure large purchases

• To keep money for long-term growth

• To manage daily expenses

What does APR stand for in terms of credit cards?

• Annual Percentage Rate

• Automated Payment Requirement

• Adjusted Payment Rate

• Annual Payment Ratio

Which of the following is not a type of bank account?

• Savings account

• Checking account

• Retirement account

• Investment fund