WorksheetsBanking Review
Total questions: 32
Worksheet time: 11mins
Name
Class
Date
1.
Offer loans with high finance charges to desperate borrowers.
a)
Pawnshops
b)
Banks
c)
Savings and loan Companies
d)
Credit Unions
2.
An automatic loan made to an account if the balance will not cover the checks written, debit card purchases
a)
Overdraft protection
b)
Collateralized loan
c)
Title loan
d)
Payday loan
3.
Purchases made with your debit card are usually deducted from your account _______.
a)
immediately
b)
within 24 hours
c)
at midnight
d)
within 5 business days
4.
What is an ATM used for?
a)
Withdraw money
b)
Apply for a loan
c)
Make electronic payments
d)
Reconciling your account
5.
A check that has been cashed and processed by the bank for payment is considered ________.
a)
cleared
b)
outstanding
c)
forged
d)
stale
6.
What agency performs central banking functions in the United States?
a)
Federal Reserve
b)
Securities and Exchange Commission
c)
US Treasury Department
d)
First National Bank
7.
Member deposits into credit unions are insured by which of the following organizations?
a)
National Credit Union Agency (NCUA)
b)
Federal Deposit Insurance Corporation (FDIC)
c)
Federal Reserve (FED)
d)
US Treasury Department (USTD)
8.
If a person makes a deposit of $10,000 or more into a bank account, the bank must notify the ______________.
a)
U.S. Treasury Department
b)
U.S. Mint
c)
Federal Reserve
d)
FBI
9.
The best reason for depositing money in a bank or credit union savings account instead of keeping your money “under the mattress” is that ______________. (EPF 12b)
a)
Most savings accounts come with a free credit card.
b)
Most savings accounts earn a guaranteed rate of interest.
c)
Money in a savings account can be accessed any time during the day or night.
d)
Money deposited ina savings account is FDIC insured.
10.
The Federal Reserve uses ____________ to regulate the nation’s money supply?
a)
monetary policy
b)
fiscal policy
c)
proposed legislation
d)
regulations
11.
Your money is insured for up to how much when kept in a bank or credit union?
a)
$250,000
b)
$200,000
c)
$150,000
d)
$100,000
12.
What fee would you be charged by a bank or credit union if you write a check and do not have enough funds to cover it?
a)
Insufficient funds fee
b)
Stop payment fee
c)
Check fee
d)
Point-of-Sales fee
13.
A financial institution that charges large fees to cash payroll and government checks to people who do not have a bank account.
a)
Check Cashing Centers
b)
Payday Loan Centers
c)
Rent-to-own Centers
d)
Pawnshops
14.
What type of check has been written but not yet returned to the bank for payment?
a)
Cleared
b)
Stale
c)
Forged
d)
Outstanding
15.
Credit unions are able to offer better interest rates because ________.
a)
Credit unions are not supervised and canmake their own rules.
b)
They are privately owned and run by a board of directors.
c)
They have an agreement with the U.S. Treasury Department.
d)
They are member owned and want to offer better services to their members.
16.
You inherited $300,000 from a long lost uncle. You would like to put the money in a savings account to earn interest. How can you ensure you will access to all of your money if the bank goes out of business?
a)
Keep your money in two financial institutions.
b)
Keep your money in a savings account with a good interest rate.
c)
Keep your money under the mattress; it is safer.
d)
Keep $200,000 in a checking account and $100,000 under your matress.
17.
The law that allows for electronic images of checks to be transmitted for processing in place of paper checks is_____.
a)
Check 21
b)
Rule of 72
c)
Truth in Lending
d)
Going Green Act
18.
When a person brings an item to a pawnshop to obtain cash, the transaction is considered________.
a)
a sales agreement
b)
a custodial payment
c)
an unsecured loan
d)
a collateralized loan
19.
A common name for U.S. currency is ______________.
a)
orange backs
b)
yellow backs
c)
blue backs
d)
green backs
20.
A blank endorsement on a check __________.
a)
has no effect on the check
b)
cancels the check
c)
creates a check that can be cashed by anyone
d)
restricts the use of the check
21.
Which of the following financial services is best suited for saving money over a period of years?
a)
Certificate of Deposit
b)
Demand Deposit
c)
Checking Account
d)
Mortgage Loan
22.
The financial calculation where interest is earned on both the principal and previously earned interest is known as _______.
a)
simple interest
b)
true interest
c)
compounding
d)
variable interest
23.
When writing a check, include all of the following except __________.
a)
the current date
b)
the name of the payee
c)
your signature on the front
d)
an endorsement on the back
24.
Who insures bank deposits?
a)
U.S. Treasury Department
b)
FDIC
c)
Federal Reserve
d)
NCUA
25.
The Federal Deposit Insurance Corporation (FDIC) insures depositors against losing their money in the case of a ____.
a)
lost debit card
b)
stolen paycheck
c)
bank failure
d)
death in the family
26.
An endorsement that allows the owner of a check to transfer the right to cash the check to someone else.
a)
Special
b)
Restricted
c)
Blank
d)
Comprehensive
27.
The major difference in banks and credit unions is ____________.
a)
credit unions are member owned
b)
banks charge higher fees
c)
credit unions pay higher interest rates on loans
d)
credit unions offer lower rate loans.
28.
The only thing you cannot do with online banking is
a)
withdraw cash
b)
pay bills
c)
transfer money
d)
deposit checks
29.
A combination of numbers you use to access your bank account.
a)
password
b)
username
c)
PIN
d)
ID
30.
When you compare your check register with your bank statement to make sure they have the same balance, you are _____.
a)
reconciling
b)
reviewing
c)
analyzing
d)
endorsing
31.
A _____ primary function is to provide mortgages to its customers.
a)
savings and loan
b)
banks
c)
credit unions
d)
government
32.
You will be charged a _____ fee if you do not have enough money in your account to complete a transaction.
a)
non-sufficient funds
b)
stop payment
c)
service charge
d)
out-of-network
100 %
