Banking and Finance Quiz

What is a Bad Check?

• A check written with sufficient funds

• A check written against an account with insufficient funds

• A check that is post-dated

• A check that is endorsed

What is the primary function of a Bank?

• To sell insurance

• To handle money, including keeping it for saving commercial purposes

• To provide legal advice

• To manufacture goods

What is a Checking Account?

• An account for saving money

• An account which allows the holder to write checks against deposited funds

• An account for investments

• An account for loans

What is a Cleared Check?

• A check that is void

• A check that has been paid by the bank and deducted from your account

• A check that is post-dated

• A check that is endorsed

What is a Credit Union?

• A for-profit financial institution

• A not-for-profit financial institution owned by its members

• A government agency

• A stock exchange

What is a Debit Card used for?

• To write checks

• To deduct money from a checking account to pay for purchases

• To deposit money

• To apply for loans

What is a Forged Check?

• A check signed by the account holder

• A check signed by someone else other than the specified person

• A check that is void

• A check that is post-dated

What is the role of the National Credit Union Association (NCUA)?

• Supervises federal credit unions and insures depositors' money

• Provides loans to small businesses

• Regulates stock market transactions

• Issues credit cards to consumers

What does NSF stand for in banking terms?

• Non-Sufficient Funds

• National Savings Fund

• New Savings Formula

• Non-Standard Finance

What is an opportunity cost?

• Benefits you could have received by performing an alternative action

• The cost of a missed payment

• The interest rate on a loan

• The fee for overdrawing an account