Banking Services

When a bank accepts your money, what do they do with it?

• They stick it in a shoe box and wait for you to come get it back.

• They loan most of it out to people who need money for cars and homes, etc.

• They put it in a big pile in the middle of the safe and dance around it.

• They write your name on every bill and look at it, longing for your return,

What is a "run" on a bank?

• It is when the bank has a "run" of several months where they are profitable and stable.

• It is when the bank "runs" to the government to receive special treatment from banking laws.

• It is when the "run" of depositors creates greater liquidity in the bank's assets.

• It is when the bank is failing and people "run" to the bank to get their money out.

How does the FDIC help prevent a bank from failing?

• They help banks find new customers to take out large loans.

• They insure the deposits in the bank so people are not as likely to take all their money out at once.

• They promote the banks through advertising and create new business for the bank.

• They pass laws in Congress to allow the banks to charge more in interest.

Harry wants to save money in a bank account. He decides to open a _______________ account with a five-year maturity date because it offers a _________________ than a savings account does.

• CD; higher interest rate

• checking; more ATM withdrawals

• money market; a lower maturity period

An account you can deposit money into and then write checks or use debit card to withdraw money is known as a ____________________.

• Money Market

• Checking

• Savings

• ATM

Why is opening a bank account a smart way to save money?

• You can earn interest on money you place in a savings account

• You can cash checks without paying a fee to a currency exchange.

• You can make sure your money is safe from theft.

• All of the above,

Moving money from one account to another is called a ______________.

• Swap

• Transfer

• Glide

• Movement

Which of the following accounts is it the easiest to take money out of the bank with?

• A basic checking account

• A basic savings account

• A savings account with a $250 minimum balance

• A $500 CD account with a term of 12 months.

What is the main function of a bank according to the text?

• To provide a place for storing valuables

• To serve as a financial intermediary

• To issue credit cards and change foreign currency

• To regulate financial institutions

What is the primary role of a central bank in a country's economy?

• A) To print money and distribute it to citizens

• B) To regulate the money supply and maintain financial stability

• C) To provide loans to small businesses

• D) To manage individual savings accounts