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WorksheetsBanking
Total questions: 10
Worksheet time: 8mins
What might happen if the government did not insure bank deposits?
Banks would be robbed far more often.
People would lose their savings if their banks went out of business.
Banks would have to buy safes with extremely thick metal walls.
Banks could no longer make loans to their customers.
Which of the following is a true statement about banking?
Keeping your money at home instead of a bank prevents you from paying the interest fees that banks charge.
It's generally safer to keep your money in a bank than to keep it at home.
Most new businesses are forced to start without loans from banks.
Most banks give their customers interest-free loans.
Compared to a checking account, the rules governing your use of a savings account are generally more:
Negotiable
Intuitive
Restrictive
Liberal
Wes wants to accumulate enough money to buy himself a new pair of sneakers. He should probably open a:
Checking account
Credit card account
Savings account
Debit card account
When you borrow money from a bank, where does that money come from?
The money other customers have deposited with the bank
The bank's own business checking account
A credit card company
The federal government
How do banks make profits?
By charging people interest to borrow money.
By charging people interest to keep their money there.
By charging a fee every time a customer writes a check or uses a debit card.
None of the above -- banks are nonprofit institutions.
Banks generally pay a higher interest rate on savings accounts than on checking accounts. What inference can you draw from this?
Checking accounts are completely useless.
Banks only lend money that customers have deposited in savings accounts.
The administrative costs associated with processing checks are really high.
Banks encourage individuals to keep money in savings accounts.
After writing a check for $172, your account is overdrawn by $31. How much money did you have in the account before you wrote the check?
$203
$141
$172
$131
What is the difference between a credit card and a debit card?
A debit card is issued by a bank; a credit card is not.
A debit card can only be used at an ATM, while a credit card can be used to buy things at stores or online.
A debit card takes money directly from your checking account, while using a credit card is a form of borrowing.
Debit card users must pay interest to banks; credit card users collect interest from banks.
Why are banks an essential part of any functioning national economy? Choose the best answer.
The interest they pay out causes the national economy to grow.
The money they loan the government allows policemen, firemen, and soldiers to get paid.
Without banks, the money supply would be extremely limited.
The loans they provide keep many businesses functioning.
