Unit 2 & 3 Banking & Investing Review

Match the following checking accounts to their descriptions.

• For business owners

• Standard account

• For customers with large sums of money

• Premium account

• For customers who want a reliable basic account

• Business account

• For customers with no need for in-person banking

• Online account

Which of the following allows customers to borrow money from a financial institution up to a certain limit?

• Debit card

• Credit card

• Trust account

• Safety deposit box

The electronic movement of money from one account to another is known as a(n) (a)   .

• Electronic funds transfer

• Electronic movement of money

• Technology funds

• Financial electronic transaction

Which of the following is the definition of multifactor authentication?

• requiring more than one method of credential authentication to verify a user's identity for a transaction.

• Restricting access to bank locations to authorized personnel only.

• Storing cash in a fire-proof safe.

• Training employees to identify fraudulent banknotes.

Which of the following choices describes the first step to taking out a loan?

• Gathering all personal assets

• Assigning a beneficiary

• recording all transactions

• Comparing institution loan rates

(a)   allows customers to have their paycheck electronically deposited directly into their account.

• Electronic withdrawal

• Direct deposit

• Deposit slip

• Online payment

Which of the following is a line of credit issued to customers to cover checks or debits exceeding the amount in their account?

• Automated teller machine

• Debt restructuring

• Overdraft protection

• Cash flow budgeting

Which of the following allows individuals to borrow against their home's value to finance major expenses?

• Home equity loan

• Mortgage loan

• Restructuring loan

• Refinancing loan

(a)   provide financial coverage to protect individuals or organizations against possible adverse events in exchange for premium payments.

• Insurance companies

• Brokerage firms

• Retail banks

• Investment unions

Which agency protects individuals and businesses by maintaining the stability of the nation's banking system, mainly by insuring bank deposits?

• Securities and Exchange Commission (SEC)

• Federal Reserve System (FRS)

• Federal Deposit Insurance Corporation

  (FDIC)

• Internal Revenue Service (IRS)