Unit 2 Test

What are two benefits depository institutions can provide?

What would be the three most important factors that you would consider when deciding which depository institution fits your needs?

What are three activities that can be completed with online banking?

What are two activities that can be completed at an ATM?

An overdraft fee may be charged if you exceed your checking account balance when using your debit card.

• true

• false

A business that offers and sells financial services to people.

• Depository Institution

• Deposit

• Withdraw

• Commercial Bank

The most common type of depository institution.

• Deposit

• Depository Institution

• Withdraw

• Commercial Bank

Money put into an account.

• Deposit

• Depository Institution

• Withdraw

• Commercial Bank

Money taken out of an account.

• Deposit

• Depository Institution

• Withdraw

• Commercial Bank

A key difference between commercial banks and credit unions is:

• Commercial banks are 'for-profit' and credit unions are 'not-for-profit'.

• Commercial banks typically pay higher interest rates than credit unions.

• Credit unions are more commonly located in rural areas while commercial banks are more commonly located in urban areas.

• Commercial banks offer more services, such as debit cards and online banking, than credit unions.