What is the primary function of financial institutions?

• To offer educational courses

• To provide entertainment services

• To facilitate the flow of cash through the economy

• To manufacture goods

Which of the following is NOT a type of checking account?

• Standard

• Joint

• Online

• Investment

What is the main purpose of a savings account?

• To purchase real estate

• To invest in stocks

• To pay daily expenses

• To store money while earning interest

How is interest typically calculated on bank accounts?

• Using a simple interest formula

• Using a compound interest formula

• Using a fixed interest rate

• Using a variable interest rate

What is a key feature of a personal loan?

• It is a recurring loan

• It has a fixed interest rate

• It is only for business use

• It does not require repayment

Which of the following is a non-depository financial institution?

• Savings and loan association

• Investment bank

• Credit union

• Commercial bank

What is the role of the Federal Deposit Insurance Corporation (FDIC)?

• To regulate credit card companies

• To provide loans to individuals

• To insure bank deposits

• To manage stock exchanges

Which service is provided by electronic funds transfer?

• Issuing physical checks

• Providing in-person banking services

• Automated teller machines (ATMs)

• Offering investment advice

What is a characteristic of credit unions?

• They only offer business loans

• They are for-profit organizations

• They are owned by shareholders

• They are member-owned and nonprofit

What is a trust account used for?

• To provide loans for home purchases

• To facilitate currency exchange

• To offer high-interest savings

• To manage and protect an account on behalf of beneficiaries