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WorksheetsStandard 3: Financial Service Providers
Total questions: 20
Worksheet time: 40mins
A financial institution that provides compensation in case of a disaster or accident is called a(n)
bank.
credit union.
insurance company.
investment bank.
A stock broker is BEST described as a
company that provides advice on insurance.
business that provides financial services to others.
person who makes loans to people who need to borrow money.
person who assists others in buying investments such as stocks and bonds.
Which of the following options would provide the GREATEST protection for your coin collection?
Buying an insurance policy
Burying it in the backyard
Buying a lock box to keep in the closet at home
Getting a safety deposit box at your bank
The primary difference between a bank and a credit union is
there is no primary difference between a bank and a credit union.
a credit union provides financial services for individuals and a bank provides financial services for businesses.
a bank is a for-profit financial service provider and a credit union is a non-profit financial service provider.
a credit union provides services to anyone who wants to use it and a bank requires you to have a membership.
If your parents are saving for your college education, they have probably
invested in real estate.
purchased stock in your name.
opened a savings account for you.
purchased a stamp collection as an investment.
Suppose it is late on Saturday night and you need to get cash. Which of the following is your BEST option?
Use an ATM to get a cash advance on your credit card.
Use an ATM to get cash from your checking account.
Go to the store to make a purchase and return it for cash.
Call a friend in another state and ask him to wire transfer money to you.
The purpose of overdraft protection is to
allow you to write checks for insufficient funds without getting caught.
allow you to write checks when you do not have enough money in the bank.
borrow money from the bank when you need more money.
allow you to move money from your savings account when your checking account is too low to cover your payments.
A company than specializes in home loans is called a(n)
mortgage company.
insurance company.
bank.
credit union.
The BEST way to build a relationship with a banker is to
open a checking account at her bank.
go by the bank each day and say hello.
buy stocks and bonds from him.
get a cash advance on your credit card.
Financial service providers charge fees to
take advantage of their customers.
offset the cost of low interest rates.
make increased profits for their stockholders.
cover the cost of providing services to their customers.
The PRIMARY reason for the expansion of financial services is due to
changes in federal legislation giving banks increased powers.
an increase in fees for services.
changes in technology that make more services available.
increased competition from foreign banks.
If you were interested in a career focused on buying newly created stocks in the primary market, you might want to be a(n)
loan officer.
commercial banker.
insurance sales person.
investment banker.
The PRIMARY purpose of a checking account is to
earn interest for future purposes.
help meet your long-term financial goals.
assist with financial transactions.
allow you to buy now and pay later.
One of the costs associated with using a debit card includes
you are charged interest on your purchases.
you can overspend by borrowing too much money.
your spending is limited to the amount of money in your account.
your spending is limited by the amount of interest you earn on your account.
Bank charters are issued by
the state government only.
the federal government only.
both state and federal governments.
a private company.
Which of the following is NOT associated with online banking?
Immediate access to your funds anytime, day or night.
Automatically transfer funds instead of writing checks.
Checks can be automatically deposited into your account.
Paying bills anytime, day or night.
A checking account feature that provides an automatic loan when you spend MORE than you have in your account is called
check cashing fees.
insufficient funds fees.
overdraft protection.
super savings for over spenders.
Which of the following is a benefit of using credit cards?
You can borrow money without having to pay it back.
You can spend more than you can afford.
You can buy today and pay tomorrow.
The amount you spend comes directly from your checking account.
If you only have a small amount of money to save, you probably want to
open a savings account at your local bank or credit union.
buy stocks that are guaranteed to increase your earnings.
put the money in your checking account.
call an investment banker and ask for advice.
The PRIMARY difference between a debit card and a credit card is
credit cards charge interest and debit cards pay interest.
credit cards pay interest and debit cards change interest.
credit cards charge interest and debit cards directly deduct funds from your account.
credit cards directly deduct funds from your account and debit cards allow you to buy now/pay later.
