MoneyPower: Banking (10 Questions)

If a person makes a deposit of $10,000 or more into a bank account, the bank must notify the

• A US Treasury Department.

• B Federal Deposit Insurance Corporation. (FDIC).

• C State Banking Commission.

• D Federal Reserve Board.

A bank Certificate of Deposit is a:

• Savings instrument that requires a deposit for a period of time during which the saver can withdraw money from the plan at any time without a penalty

• Savings instrument that requires a deposit for a period of time during which there is a penalty for withdrawals

• Cash deposit in a savings account that earns interest

• Certificate for deposits that are issued for half the face value

The National Credit Union Administration (NCUA) insures accounts in:

• Credit unions

• Commercial banks

• Brokerage firms

• Savings banks

Money orders are:

• Distributed by the Treasury Department

• Available for no fee at banks and retail stores

• A purchased certificate to pay a specified amount to a specific payee

• A certified check used to pay a specified amount to a specific payee

Frankie's savings account has earned a lot of interest. He wants to know if he must pay taxes on the interest earned. What would the IRS tell him?

• Interest earned on savings accounts is not taxable

• A sales tax will be charged on the interest earned

• Savings account interest is taxable

• If the interest is under $50, it is not taxable

Joan wants to open a checking account and wonders if checking accounts pay interest. How would you answer her question?

• All checking accounts pay interest

• Some types of checking accounts pay interest

• Checking accounts never pay interest

• Checking accounts pay interest if the account balance does not fall below $300.00

A person is depositing $20 in cash and a $50 check. On the checking account deposit slip, the person should

• include the reason that both cash and a check are being deposited.

• indicate what bank issued the check that is being deposited.

• indicate the amount of money that is currently in the checking account as well as in a savings account to cover the check.

• list the cash deposit separately from the check as well as the total of the deposit.

Which financial product has the most predictable income?

• Stock

• Real estate

• Certificate of deposit

• Option/future contract

Banks use savings account deposits to:

• Make their services and products attractive for new depositors

• Pay for employee special projects

• Give loans to consumers and businesses

• Improve the quality of life in low-income communities

• Series EE savings bond

• Certificate of deposit

• 50 shares of ABC Co. stock

• ABC Co. bond