GFL Strand 4, Standard 1: Financial Institutions

What does the FDIC do?

• It protects bank deposits up to $250,000 per depositor.

• It manages investments for individual retirement accounts (IRAs).

• It provides financial advice to consumers.

• It determines interest rates for all banks.

What does the NCUA protect?

• Credit union deposits up to $250,000 per member.

• Investments in mutual funds offered by banks.

• Savings bonds issued by the government.

• Mortgage loans for first-time homebuyers.

What is a checking account used for?

• To manage everyday transactions, like paying bills or using a debit card.

• To save money for long-term goals, like retirement.

• To invest in stocks and mutual funds.

• To secure funds for emergencies only.

What is the purpose of a savings account?

• To save money safely while earning interest over time.

• To access funds for daily spending needs.

• To lock money away without access for five years.

• To invest in high-risk financial products.

What is online bill pay?

• A bank feature that allows users to set up automatic payments for recurring bills.

• A service that calculates your total monthly expenses.

• A method to avoid late fees by scheduling payments in person.

• A tool for paying bills through the post office.

What is a peer-to-peer transfer?

• A way to send money instantly to another person, like using Venmo or Zelle.

• A transfer between two checking accounts at the same bank.

• A wire transfer service used for large sums of money.

• A financial exchange done exclusively at bank branches.

What happens if you have non-sufficient funds (NSF) in your account?

• The bank may reject the transaction and charge an NSF fee, usually $25–$35.

• The payment is delayed until the account has enough money.

• The transaction goes through without penalty.

• The account automatically closes due to insufficient funds.

What is overdraft protection?

• A service where the bank covers transactions by pulling funds from a linked account or line of credit.

• A feature that stops all transactions when your account is low.

• A tool for paying bills using credit instead of cash.

• A program that refunds any overdraft fees charged by the bank.

What is a debit card?

• A card that allows you to make purchases using money directly from your checking account.

• A card that provides access to loans for large purchases.

• A card used exclusively for earning cashback rewards.

• A card that automatically deposits your paycheck.

What is a mobile deposit?

• Using a bank app to take a photo of a check and deposit it into your account.

• Transferring money electronically between your savings and checking accounts.

• Depositing cash at an ATM using a smartphone.

• Withdrawing funds from your account without a physical card.