Worksheet Questions

The Federal Deposit Insurance Corporation (FDIC) insures accounts in

• Commercial banks

• Credit unions

• Brokerage companies

• Commercial banks and credit unions

The Federal Deposit Insurance Corporation (FDIC) currently insures against loss of up to how much per person in an individual account at any one institution?

• $50,000

• $100,000

• $250,000

• $500,000

How can a person transfer money out of their checking account?

• Write a check

• Use a debit card

• Make electronic funds transfers

• All of these

Which of the following could incur fees and penalties on a checking account?

• The account holder uses an ATM not owned by the financial institution

• A customer asks the financial institution to not honor a particular check

• The account balance falls below a set of minimum amount

• All of these

Certificates of deposit (CDs) tend to pay higher interest rates than money market accounts because

• CDs are not government insured and therefore are riskier investments than money market accounts.

• The required minimum investment for CDs is higher than for money market accounts.

• There are higher annual fees charged for CDs than for money market accounts.

• The investor agrees to leave his or her money in the CD for a specified period of time while he or she has free access to the funds in a money market account.

Which of the following is a reason why you should reconcile your bank accounts regularly?

• You or your bank may have made a computational error.

• Checks you have written may not have cleared your account.

• Fees may have been incurred lowering your balance below what you think you have.

• All of these

Which of the following is not a benefit of a savings account?

• A way to save for your child's education.

• Builds funds for large, irregular expenses.

• Protection against inflation.

• A way to achieve short-term savings goals.

Which of the following types of payment instruments could you get at your local post office?

• Certified check

• Money order

• Cashier's check

• Travelers check

Which account is primarily used for everyday transactions like paying bills or shopping?

• Savings Account

• Checking Account

• Certificate of Deposit

• Money Market Account

Which account usually earns interest on the balance?

• Checking Account

• Savings Account

• Both Checking and Savings

• Neither