WorksheetsBanking
Total questions: 10
Worksheet time: 30mins
If a person makes a deposit of $10,000 or more into a bank account, the bank must notify the
US Treasury Department
Federal Deposit Insurance Corporation (FDIC)
State Banking Commission
Federal Reserve Board
Joan wants to open a checking account and wonders if checking accounts pay interest. How would you answer her question?
All checking accounts pay interest.
Some types of checking accounts pay interest.
Checking accounts neve pay interest.
Checking accounts pay interest if the balance does not fall below $300.
What action should a person take who must make a tuition payment at the end of August each year?
Decide how much money will be needed and then place 1/12th of that amount in a separate account each month.
Divide the total amount of money that will be needed into 12 equal parts and invest that amount in stocks.
Obtain a short-term collateralized loan for the amount of money needed.
Plan to open a new credit card account that will be used to charge the needed amount of money.
Which financial product has the most predictable income?
Stock
Real estate
Certificate of deposit
Option/future contract
How can individuals be prepared for losing their job or having a large medical expense?
Maintain a checking account with sufficient funds.
Pay credit card bills on time.
Prepare a budget.
Save at least three months of income.
You have a checking account balance of $100 and you deposit a personal $200 check from your brother. When will you be able to withdraw $150 cash?
The same day as the $200 deposit.
3-7 days later, depending on the bank's check clearance policy.
After receiving a checking account statement at the end of the month.
On the day you make your next deposit.
The financial institution where Ms. Sanchez has her checking account will continue to pay out money for the checks she writes as long as:
She uses checks from her checkbook.
The financial institution has sufficient funds
There is enough money in her account to cover the amount of the checks.
She maintains a good record of deposits and handles her account responsibly.
Pat has a savings account and a car loan from a not-for-profit financial institution owned by its members. She is probably a member of what type of financial institution?
Credit Union
Commercial bank
Savings and loan association
Investment club
When James received his paycheck, he planned to cash it at a check cashing store. You advise him to cash it at his own bank if possible. Why?
They typically require a two-day waiting period before giving cash.
They typically charge high fees.
There is likely to be a ceiling on the size of the check that he can cash.
They generally require a co-signor
Which financial product can you buy for $25, is safe, and will be worth $50 at a future date?
Series EE savings bond
Certificate of deposit
50 shares of ABC Co. stock
ABC Co. bond
