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WorksheetsUnit 5 Banking
Total questions: 50
Worksheet time: 25mins
A _____ is a full service for profit institution that provides financial services.
commercial bank or retail bank
savings and loan
credit union
A _____ is a financial institution that specializes in savings accounts and mortgage loans.
commercial bank
savings and loan
credit union
A _____ is a nonprofit financial institution that is owned by its members.
commercial bank
savings and loan
credit union
Commercial banks and S&Ls are protected by the
FDIC
NCUSIF
The FDIC provides insurance up to $_____ per person per bank in each account category.
$250,000
$500,000
$125,000
Credit unions are protected by
FDIC
NCUSIF
What is the big disadvantage of using check cashing services or payday lenders?
higher interest rate and fees
no disadvantage same as using a bank or credit union
The Federal Reserve Act was put into law so problems like those that occurred during the Banker's Panic of 1907 would not happen again.
True
False
The FED (choose all that apply)
prints money.
controls how much money is available.
adjusts long term interest rates.
helps steer the economy in the right direction by keeping prices stable and promoting high employment.
The FEDs Board of Governors ______.
ensures banks behave responsibly
collect data and research on the economy, keep an eye on the banks in their region, and provide financial services to other banks including the US government
decides the nation's policies about the money supply and interest rates charged to banks
The FED's Reserve Banks _____.
ensures banks behave responsibly
collect data and research on the economy, keep an eye on the banks in their region, and provide financial services to other banks including the US government
decides the nation's policies about the money supply and interest rates charged to banks
The FED's Federal Open Market Community _____.
ensures banks behave responsibly
collect data and research on the economy, keep an eye on the banks in their region, and provide financial services to other banks including the US government
decides the nation's policies about the money supply and interest rates charged to banks
What is meant by liquidity?
how quickly you can get your hands on your cash
how quickly you can put money into your checking account
how quickly your bank pays your bills
Accounts that are _____ tend to have lower interest rates.
more liquid
less liquid
Accounts that are _____ tend to have higher interest rates.
less liquid
more liquid
Which of the following has the highest liquidity?
Checking Account
Savings Account
CD
Which of the following has the lowest liquidity?
Checking account
Savings account
Certificate of Deposit
The amount box of a check ______.
holds the amount written in numeric form
holds the amount written in written form
The memo line of a check _____.
provides a line to write what check is for/least important part of check
is located at top right; used to keep track of and identify the checks you write
The check number of a check _____.
is located at top right; used to keep track of and identify the checks you write
is a series of numbers at bottom that identify which financial institution issued the check
is a series of numbers at bottom that identify which account to pull money from
The routing number of a check is _____.
located at top right; used to keep track of and identify the checks you write
a series of numbers at bottom that identify which financial institution issued the check.
a series of numbers at bottom that identify which account to pull money from
The Account number of a check is _____.
located at top right; used to keep track of and identify the checks you write
a series of numbers at bottom that identify which financial institution issued the check
a series of numbers at bottom that identify which account to pull money from
The Signature line of a check holds the _____.
name of the person who is authorizing payment
name of the person who is to receive the money
The payee line of the check holds _____.
name of the person who is authorizing payment
name of the person who is to receive the money
The amount line of the check holds ____.
the amount written in numeric form
the amount written in written form
A disadvantage of using cash is ___.
you can only spend what you have
hard to keep track of where you spent the money
A benefit of using a checking account is ____.
helps you keep track of where your money goes
there are no consequences if you overdraw
A downside to using a checking account is _____.
there could be fees.
it could be interest bearing.
How can you get your money out the bank besides writing a check? (check all that apply)
use a debit card and get cash back
use a deposit slip
withdraw money at the ATM
What is a form a ID the bank will accept when opening a checking account?
Driver's license
School ID
Only checks need to be recorded in a check register.
True
False
A ______ means your paycheck is automatically put into your account at regular intervals.
direct deposit
automatic payment
A _____ means you pre-authorize recurring bills to be paid such as insurance premiums, mortgages, student loans.
direct deposit
automatic payment
A Signature card is completed when opening a checking account to prove your identity.
True
False
The minimum balance is ____.
the least amount of money that can be in your account without being charged a fee.
the largest amount of money that can be in your account without being charged a fee
A transaction is any deposit or withdrawal from your account.
True
False
You can use your ATM card anywhere without a fee or surcharge.
True
False
If you use your debit card as a credit card money will not be drawn out of your account until the end of the month.
True
False
Banks will request information by email if they suspect something is wrong with your account or if they have a question.
True
False
With a certified check _____.
the bank verifies you have $ and signature is genuine
the bank deducts $ from your account and writes one from the bank
With a cashier's check _____.
the bank verifies you have $ and signature is genuine
the bank deducts $ from your account and writes one from the bank
If you just sign your name to the back of a check this is called a _____.
blank endorsement
restrictive endorsement
special endorsement
If you write the words "For Deposit Only" and your name on the back of a check this is an example of a _____.
blank endorsement
restrictive endorsement
special endorsement
If you write "Pay to the Order of (name of person)" then sign your name this is a ______.
blank endorsement
restrictive endorsement
special endorsement
You have to sign the deposit slip ____.
every time you make a deposit
when you want cash back from the deposit
How often should you reconcile your bank statement with your check register?
1 time a week
1 time a month
every six months
1 time a year
It is illegal to make a check made payable to "me".
True
False
It is illegal to turn in an unsigned check.
True
False
The Routing number is located at bottom left of check/identifies bank where the account of the check holder is located.
True
False
An outstanding deposit or check has not cleared the bank yet .
True
False
