Econ Review 2.1 + 2.2

How much money does the FDIC insure?

• $475,000

• $125,000

• $250,000

• $300,000

Why is direct deposit more effective?

• You don't have to go to the bank

• You have an electronic check history

• Check is deposited even when the bank is closed

• All answers are correct

What does the bank do with your money when you deposit it?

• Loan it out

• Keep 10% of it in the bank

• Make money for themselves off your money

• All answers are correct

Larger banks are always better than credit unions.

• True

• False

You should not keep all of your money in your checking account.

• True

• False

What does FDIC mean?

• Federal Deposit Insurance Corporation

• Family Domestic International Conspiracy

• Free Domicile Inspection Corporation

• Don't choose this one.

An organization that provides services related to money

• commercial bank

• charter

• financial institution

Examples of these types of banks are Wells Fargo, Chase, and Regions

• commercial banks

• credit unions

• charters

A non profit financial cooperative owned by and operated for the benefit of its members; services offered only to its members

• credit union

• commercial bank

• savings and loans associations

A service offered by most banks and credit unions that requires a Personal Identification Number (PIN) to check account balances, make cash withdrawals and deposits, and move money from one account to another.

• electronic funds tranfer

• electronic financial transitioning

• automated teller machine