Banks and Banking Quiz

What is a key difference between banks and credit unions regarding ownership?

• Banks are owned by customers.

• Credit unions are privately owned.

• Banks are privately owned.

• Credit unions are profit-focused.

Which type of financial institution typically offers lower loan interest rates?

• Banks

• Credit unions

• Both offer the same rates

• Neither offers loans

How do credit unions typically use their surplus earnings?

• Reinvest in the business

• Pay dividends to customers

• Increase loan interest rates

• Open more branches

Which financial institution is best for diversity in accounts?

• Credit unions

• Banks

• Both are equal

• Neither offers diverse accounts

Which of the following services are offered by both banks and credit unions?

• Checking and Savings Accounts

• Stock Trading

• Real Estate Management

• Insurance Policies

What is the responsibility of all financial institutions regarding large deposits?

• Report deposits of $5,000 or more to the IRS

• Report deposits of $10,000 or more to the IRS

• Report deposits of $15,000 or more to the IRS

• Report deposits of $20,000 or more to the IRS

Which of the following is NOT a similarity between banks and credit unions?

• Certificates of Deposits (CDs)

• ATM services, debit & credit cards

• Loans & Mortgages

• Cryptocurrency Exchange

Which organization insures banks?

• FDIC (Federal Deposit Insurance Corp.)

• NCUA (National Credit Union Association)

• SEC (Securities and Exchange Commission)

• FINRA (Financial Industry Regulatory Authority)

What is one advantage credit unions generally have over banks?

• Better interest rates on savings accounts

• More ATM locations

• Better for checking account needs

• Tied to debit cards

Which organization insures credit unions?

• FDIC (Federal Deposit Insurance Corp.)

• NCUA (National Credit Union Association)

• SEC (Securities and Exchange Commission)

• FINRA (Financial Industry Regulatory Authority)