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Fin.Lit.-Chap.7-Banking

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

This is an independent agency that protects bank deposits, promotes consumer advocacy, and insures deposits.

a)

Finance Direct Insurance Company

b)

Federal Deposit Insurance Corporation

c)

Finance Department in Commerce

2.

What is the maximum amount of money insured per depositor at a bank?

a)

$100,000

b)

$250,000

c)

$10,000

d)

$25,000

3.

Anyone can use a check cashing service to cash checks.

a)

True

b)

False

4.

Check cashing services are usually free.

a)

True

b)

False

5.

Which one is a "Depository" Institution?

a)

Life Insurance Companies

b)

Investment Companies

c)

Finance Companies

d)

Commercial Banks

6.

Which type of account has these 3 benefits: good rate of return, some check writing, and is insured. But, it also requires a minimum balance.

a)

Regular savings accounts

b)

Certificates of deposit (CDs)

c)

Money market accounts

d)

U.S. Savings Bonds

7.

Which type of account has these 3 benefits: low minimum balance, ease of withdrawal, and is insured. However, the drawback is a low rate of return.

a)

Regular savings accounts

b)

Certificates of deposit (CDs)

c)

Money market accounts

8.

Which type of account has these 3 benefits: guaranteed rate of return for time of CD and is insured. However, 2 drawbacks are: possible penalty for early withdrawal and minimum deposit.

a)

Regular savings accounts

b)

Certificates of deposit (CDs)

c)

Money market accounts

9.

Banks offer only one choice of checking account, called a "regular checking account".

a)

True

b)

False

10.

There are 4 things you need to consider when evaluating what Type of Checking Account (not the Bank) to choose: Restrictions, Interest, Special Services, and _____________?

a)

Fees and Charges

b)

Color of your checks

c)

Deposit slips

d)

Direct Deposit

11.

If a check is lost or stolen, you can ask the _____________ to issue a stop-payment order.

a)

neighbor

b)

post office

c)

bank

d)

boss

12.

This allows you to see and update your checking account balance as you withdraw or deposit money into your account.

a)

Bank statement

b)

Bank reconciliation form

c)

Check register

d)

Deposit slip

13.

Use a bank reconciliation form to determine your true __________________.

a)

savings

b)

balance

c)

deposits

d)

purchases

14.

Which is NOT a category of Financial Services?

a)

Savings

b)

Payment Services

c)

Borrowing

d)

Market Research

15.

Direct Deposit saves time, money, effort but it is not safe.

a)

True

b)

False

16.

With Automatic Payments, you need to make sure there are sufficient funds in your account.

a)

True

b)

False

17.

ATMs are used with a debit card. The debit card is used with a 4 digit personal code which is called a:

a)

PIN

b)

ATM

c)

IBM

d)

FBI

18.

Financial institutions cannot charge fees for using ATMs.

a)

True

b)

False

19.

Which is NOT considered a Deposit Institution?

a)

Commercial Banks

b)

Credit Unions

c)

Life Insurance Companies

20.

Pawn Shops usually give you the true monetary ($) value for your item.

a)

True

b)

False