Banking Products and Services Review

Which of the following allows customers to borrow money from a financial institution up to a certain limit?

• Debit card

• Credit card

• Trust account

• Safety deposit box

The electronic movement of money from one account to another is known as a(n) _________.

• Electronic funds transfer

• Wire transfer

• Direct deposit

• Online payment

Which of the following is the definition of multifactor authentication?

• Requiring more than one method of credential authentication to verify a user’s identity for a transaction

• Restricting access to bank locations to authorized personnel only

• Storing cash in a fire-proof safe

• Training employees to identify fraudulent banknotes

Which of the following choices describes the first step to taking out a loan?

• Gathering all personal assets

• Assigning a beneficiary

• Recording all transactions

• Comparing institution loan rates

__________ allows customers to have their paycheck electronically deposited directly into their account.

• Electronic withdrawal

• Direct deposit

• Cash deposit

• Wire transfer

• Check deposit

Which of the following is a line of credit issued to customers to cover checks or debits exceeding the amount in their account?

• Automated teller machine

• Debt restructuring

• Overdraft protection

• Cash flow budgeting

• Student account, senior account, joint account, and checking account.

• Checking account, joint account, senior account, and student account.

• Joint account, senior account, student account, and checking account.

• Senior account, student account, joint account, and checking account.

Which of the following allows individuals to borrow against their home’s value to finance major expenses?

• Home equity loan

• Mortgage loan

• Restructuring loan

• Refinancing loan

Fill in the blanks using the word bank provided below. ____________ are companies engaged in the business of dealing with the __________ transactions of individual and commercial clients. These institutions facilitate ________________ through the ___________ and are regulated by federal and state laws and monitored through the ________________________.

• Financial institutions, monetary, flow of cash, economy, Federal Reserve System

• Flow of money, Financial institutions, Federal Reserve System, monetary, economy

Saoirse wants to calculate the interest she will earn on the money in her checking account over the next five years if she maintains her current financial habits. Saoirse maintains an average balance of $1,750 in her checking account. The annual interest rate on her checking account is one and a half percent, and the bank pays interest monthly. What is the total amount of money Saoirse will have in her account after five years? Round to the nearest cent.

• $2,564.32

• $1,886.21

• $4,119.41

• $3,687.57