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WorksheetsFinancial Institutions
Total questions: 14
Worksheet time: 1hrs 10mins
The Garret family wants to take advantage of their state's
_______________ to pay for their child’s college tuition.
CD
529 plan
Roth IRA
traditional IRA
Choose two answers.
Jeff wants to open a basic savings account. He should go to which two types of financial institutions to open the account.
a financial services company
a commercial bank
an insurance company
a trust company
a credit union
Which financial institution is owned by its members?
financial service company
savings and loan association
commercial bank
credit union
Which financial institution offers high-risk loans?
financial service company
savings and loan association
commercial bank
credit union
Which financial institutions provides home mortgages?
financial service company
savings and loan association
commercial bank
credit union
Which financial institutions offers checking accounts?
financial service company
savings and loan association
commercial bank
credit union
Which two features does a basic savings account have?
allows money
transfers
offers a higher
interest rate
allows ATM
withdrawals
has a maturity date
Which two features does a CD (certificate of deposit) have?
allows money
transfers
offers a higher
interest rate
allows ATM
withdrawals
has a maturity date
Which would be the best retirement savings option for a 40-year old engineer whose employer offers a five percent contribution match?
IRA
401(k)
basic savings account
money market account
The FDIC ruled that a company had violated the FTC Act. What penalty can the company expect?
criminal charges
merger with another financial institution
a fine
closure of operations
What are high-risk loans?
loans that are given for risky home properties
loans that are provided by commercial banks
loans that are given to consumers with bad credit
loans that are invested in high-risk stocks
What is a minimum balance when it comes to account requirement?
minimum dollar amount that can be withdrawn from an account
minimum dollar amount needed for the account to be tax free
minimum dollar amount that can be automatically withdrawn
minimum dollar amount that can be in an account
Which is the best investment option for a person who wants to make a long-term, tax-free investment?
money market account
401(k)
traditional IRA
Roth IRA
What is the purpose of tax-deferred retirement accounts?
to level high taxes on a consumer at retirement age
to collect taxes during retirement at higher rates
to encourage consumers to invest money before it is taxed
to trick consumers into investments that will incur fines and penalties
