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WorksheetsSS 9.03-9.05
Total questions: 10
Worksheet time: 5mins
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 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 home.
Most new businesses are forced to start without loans from banks.
Most banks give their customers interest-free loans.
You can withdraw (take out) money from a savings account as many times as you want each month.
True
False
Wes wants to get enough money to buy himself a new bicycle. He should probably open a:
checking account
credit card account
savings account
debit card account
When you borrow money from a bank for a loan, 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
What is one way that banks make a profit?
by charging people interest to borrow money from them
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)
When you use a credit card to make a purchase, you never have to pay the money back.
True
False
When you ________ your checking account, that means you have spent more money than you had in your account.
deposit
credit
overdraw
save
What is the difference between a credit card and a debit card?
A debit card is issued by a bank, while 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, while credit card users collect interest from banks.
Banks charge higher interest rates for loans because they are considered risky.
True
False
