Unit 8 Review

A financial institution that handles money, including keeping it safe for saving or commercial purposes.

• payday lender

• bank

• check cashing service

• pawn shop

Banks are for-profit companies owned by shareholders, and credit unions are not-for-profit institutions owned by their customers.

• True

• False

Credit unions and banks provide similar types of financial services.

• 
  

• True

• False

If you don’t have a traditional bank account and you need money from a check, you may visit this financial institution, where they will happily help you, for a fee.

• credit union

• mortgage company

• check cashing service

• payday lender

This type of financial institution has come under fire recently for targeting the poor and most vulnerable people in society with extremely high interest rates.

• pawn shops

• check cashing services

• credit unions

• payday lenders

A financial institution that specializes in helping people get a loan to purchase a house.

• bank

• credit union

• mortgage company

• payday lender

What is the amount the FDIC insures deposits in a bank or credit union?

• $25,000

• $50,000

• $100,000

• $250,000

Cornelius is 17 years old. Can he open a checking account in Alabama?

• Yes, he only needs proper ID.

• Yes, if a person 19 or older is also on the account.

• No, he must be 18 years old.

• No, he must be 19 years old.

Some financial institutions charge a fee for checking accounts, while other financial institutions provide customers with a free checking account.

• True

• False

Credit unions usually pay a ____________ interest rate on savings accounts and a ________ interest rate on loans than banks.

• higher; lower

• lower; higher

• higher; higher

• lower; lower