Financial Institutions Quiz

If you were to make a financial investment, what would make it grow fastest?

• Dividends

• Simple interest

• Compound interest

• Real Estate

What type of insurance would you buy to make sure your family is financially stable if you were to die?

• Auto insurance

• Disability insurance

• Life insurance

• Umbrella insurance

What type of insurance would you buy to make sure you will receive payments in case you are injured?

• Auto insurance

• Disability insurance

• Life insurance

• Umbrella insurance

The amount of money you pay to an insurance company for coverage is known as a

• Deductible

• Premium

• Interest rate

• Dividend

They are FDIC insured.

• Credit Union

• Title Pawn Lender

• Payday Lender

• Bank

They generally have the lowest interest rates on loans.

• Credit Union

• Title Pawn Lender

• Payday Lender

• Bank

They offer loans in exchange for a portion of your paycheck.

• Credit Union

• Title Pawn Lender

• Payday Lender

• Bank

They offer loans in exchange for collateral.

• Credit Union

• Title Pawn Lender

• Payday Lender

• Bank

When you deposit money in a bank, what does the bank do with that money?

• Put it in a safe with your name on it.

• Pay dividends to your beneficiaries.

• Lend it out and charge interest to borrowers.

• Invest it in stocks for you.

When putting together a savings and investment plan, what is the best strategy?

• Maxing out your 401K

• U.S. Treasury Bond

• Diversification

• Certificate of Deposit