Exploring Functions of Financial Institutions

What is one of the primary functions of a bank?

• Selling insurance

• Providing legal counsel

• Accepting deposits

• Offering investment advice

What type of bank account is typically used for regular transactions?

• Checking account

• Mortgage account

• Savings account

• Loan account

What is the purpose of a savings account?

• To save money for a specific purchase

• To save money for daily expenses

• To check your financial status regularly

• To earn interest on stored money

What does FDIC stand for?

• Federal Division of Insurance and Credit

• Federated Department of Investment and Credit

• Federal Deposit Insurance Corporation

• Financial Department of Interstate Commerce

Up to how much money does the FDIC insure in a bank account?

• $150,000

• $200,000

• $100,000

• $50,000

What can you use a bank loan for?

• All of the above

• Buying a home

• Paying for a vacation

• Purchasing a car

What is a mortgage?

• A type of savings account

• A long-term loan for purchasing property

• A loan specifically for buying stocks

• A short-term loan for small purchases

How long is a typical mortgage term?

• 30 years

• 20 years

• 10 years

• 40 years

Is there a penalty for paying off a loan early?

• Yes, always

• Yes, but only for large loans

• No

• Depends on the bank

What happens if a bank goes out of business?

• You lose all your money

• The government will refund your money up to a certain amount

• You will have to apply for a refund through the court system

• Another bank will take over your account