WorksheetsBanking Services
Total questions: 65
Worksheet time: 59mins
What is the ONLY thing you cannot do within a checking account?
make deposits
invest in stocks
write checks
withdraw money
The card you use to both access funds in your bank account and pay for goods and services is:
a credit card
a birthday card
a gift card
a debit card
Writing a check is the same thing as:
making a withdrawal
getting the bank to issue a cashier's check
using a debit card
using a credit card
What can I NOT do with a debit card?
withdraw money at an ATM
deposit money at an ATM
transfer money from one of my accounts to another
transfer money to another person's account
If I use my debit card for a purchase, I have to put in my PIN number. If I want to use my debit card for a credit purchase, I have to:
also use my PIN number
sign a sales slip
use a different card
provide additional ID
When I use my debit card, the money is almost immediately taken from my account.
true
false
If I have an account and a debit card, the financial institution will automatically issue me a credit card, too.
true
false
An advantage of having a savings account is that the funds are immediately available when I need them.
true
false
An advantage of a savings account is that the interest rate is high.
true
false
The contents of a safety deposit box are not insured by the FDIC, but banks can offer insurance if the items are lost or destroyed.
true
false
The contents of a safety deposit box are not insured by the FDIC, but banks can offer insurance if the items are lost or destroyed.
true
false
The contents of a safety deposit box are not insured by the FDIC, but banks can offer insurance if the items are lost or destroyed.
true
false
When I write a check for more than I have in the bank it is called:
a felony
an overdraft
a fee
grounds for closing my account
Overdraft protection means if I write a check for more than I have in the account, the bank will cover the check and I don't have to pay them back.
true
false
If I pay someone by check for a chair and it turns out to be damaged, I can refuse to pay by requesting the bank put a stop payment order on it.
true
false
A cashier's check is NOT
guaranteed by the bank
purchased from the bank
used to make a payment
able to bounce (be returned for nonpayment)
A certified check is a personal check that is: (choose 3)
stamped certified by a bank official
guaranteed as being covered by the money in my account.
only deliverable by the bank
immediately deducted from my account, making those funds unavailable.
I must have a checking or savings account to get a money order.
true
false
What of the following is true? Bank... (more than 1 answer)
is a financial institution
is a financial intermediary
is a private business and is not regulated
connects customers that have capital deficits to customers with capital surpluses
accepts deposits and channels those deposits into lending activities
Which types of banks can you name? (more than one answer)
Central bank
Investment bank
Non-profit bank
Commercial bank
What are the functions of commercial banks? (more than one answer)
maintain record of Government revenue and expenditure
determine foreign exchange rates
exchange foreign currencies
receive deposits
give loans
What functions have the merchant banks? (more than one answer)
raise funds for industry on the various financial markets
determine foreign exchange rates
finance international trade
receive deposits
What are the main functions implemented by the Central bank? (4)
It prints the national currency and determines foreign exchange rates
it advises the Government on monetary and credit policies and maintains record of Government revenue and expenditure
offer stockbroking and portfolio management services to rich corporate and individual clients
it decides on the interest rates for bank deposits and bank loans
maintain deposit accounts of all other banks and advances money to other banks, when needed
What differs merchant bank from commercial one? (one answer)
Merchant banks work mainly with the government
Merchant banks work mainly with individuals
Merchant banks deal mainly with businesses
Merchant banks deal mainly with commercial banks
What are the main types of deposits? (more than one answer)
Current Deposit
Interest Deposit
Fixed deposit
Savings deposit
What is the difference between current and fixed deposit? (one answer)
Current deposit is only for small sums of money
Fixed deposits can be withdrawn any time, but current deposits can not
Current deposits can be withdrawn any time, but fixed deposits can not
What types of loans do you know? (more than one answer)
Savings
Cash credit
overdraft
current
Mortage
What are the primary functions of commercial banks? (more than one)
accepting deposits
collection of checks
granting loans
foreign exchange
Which of the following are the secondary functions of the commercial banks? (three answers)
collection of checks
transfer of funds
dealing in foreign exchange
accepting deposits
lending money
What is a minimum interest rate? (one answer)
This is the discount rate, at which the central bank makes secured loans to government
This is the discount rate, at which the central bank makes secured loans to individuals
This is the discount rate, at which the central bank makes secured loans to business
This is the discount rate, at which the central bank makes secured loans to commercial banks
What is collateral? (one answer)
Hollywood movie with Tom Cruise
an asset to secure the loan
the board of directors of the central bank
member of bank staff
Who are blue chips? (one answer)
Very rich bankers
Wealthy government officers
poor people
very safe large companies
Which of the following are services granted by the banks? (more than one answer)
Mobile banking
Net-banking
Collateral
ATM
Safeguarding
Which of these items are considered commodities?
oil
water
agricultural crops
precious metals like gold
When measuring the benefit provided by a good or service, this can be identified as
economic value
intrinsic value
opportunity cost
subjective value
Value that is based on an opinion of a person, society, etc. is what type of value?
economic value
intrinsic value
subjective value
speculative value
Intrinsic value is best defined by which of the follow?
value that is measured by an opinion
value that is measured by the thought that the price of the good will rise in the future
a general statement on the usefulness of a good or service
value that is based on scarcity, usefulness, and the labor and materials that went into production
When people or groups purchase items with the thought that the value will increase, items like oil or gold, what type of value is this describing?
speculative value
intrinsic value
subjective value
objective value
Which of these are functions of money?
medium of exchange that allows the trade of goods and services
holds value over time
standard of value that allows comparison of the value of goods related to one another
used as the only means of trade between nations
A type of money that is backed by a material, such as gold, is referred to as
certificate money
representative money
fiat money
commodity money
Commodity money can be best described as money that is
backed up by a valuable material
valuable based on the material that the money is made from
used to purchase valuable materials
valuable because a government says it is and people accept that it is valuable
Money in the United States is which type of money?
fiat money
representative money
commodity money
speculative money
The Federal Reserve controls monetary policy in the United States, trying to control
inflation, or money losing its purchasing power
deflation, or money becoming more valuable
money supply, the amount of money available in the economy
the number of banking institutions in the nation
Which type of check endorsement would consist of an individual's signature only.
blank
restrictive
special/full
When writing a check, it is a good idea to use
pencil
erasable pen
blue or black ink pen
red pen
Another name for an overdraft fee is non-sufficient funds.
true
false
The drawer is the person writing check.
True
False
The payee is the financial institution the check is written on.
True
False
Which of the following insures checking accounts at both a bank and a credit union? (you must choose more than one) HINT: there are two correct answers
NCUA
FDIC
FTIC
NAACP
The only time you need to sign a deposit slip is when you are getting cash back after a deposit.
True
False
Which part of the check is the least important?
memo line
signature line
routing numbers
check number
You are opening a savings account that earns compound interest. Which compounding frequency will earn you the MOST money?
Compounding 1 time per year
Compounding quarterly
Compounding monthly
Compouding daily
When it comes to saving money, what is a good rule of thumb?
Keep most of your savings in your checking account
Put aside money for savings each month
Choose the savings account with the lowest interest rate
Put anything you can't afford on your credit card
What of the following is true? Bank... (more than 1 answer)
is a financial institution
is a financial intermediary
is a private business and is not regulated
connects customers that have capital deficits to customers with capital surpluses
accepts deposits and channels those deposits into lending activities
What is "interest"?
Direct deposit
Specialized savings
Rate earned, compounding method, fee charged.
