Financial Institutions Quiz

What do financial institutions do with the money they collect?

• Use it to give out loans

• Invest it to make more money

• Hide it in vaults

• Donate it all to charity

Which institution is required to follow state and federal laws and regulations?

• banks

• credit unions

• savings and loans

• none of these

• all of these

Who forms a credit union?

• Its members

• A large corporation or organization

• Wealthy investors

• A local community

What is necessary to keep your money in a credit union?

• To be a member of the credit union

• To own a home

• To own a car

• $10,000 initial deposit

Which financial institution is known for being nonprofit?

• Bank

• Credit union

• Savings and loan

• Investment firm

What is one advantage of having your money in a bank?

• Its value grows through interest

• It can be accessed easily and quickly

• It is safe and insured

• None of these

• All of these

From which of these does financial institutions keep your money safe?

• theft

• loss

• fire

• none of these

• all of these

What does the FDIC do for bank deposits?

• Charges a fee

• Insures deposits up to a certain amount

• Reduces the interest rate

• Transfers money automatically

What service allows a customer to access accounts via the internet?

• Direct deposit

• Money transfer

• ATM

• Online banking

What is the purpose of the FDIC?

• To charge fees on deposits

• To insure deposits in banks

• To provide loans to customers

• To manage bank employees