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FDIC Review

Total questions: 15

Worksheet time: 30mins

Name
Class
Date
1.

Define the Equal Credit Opportunity Act (ECOA).

4 lines
2.

A loan is the amount of money a financial institution charges for letting you use its money.

a)

True

b)

False

3.

Bankruptcy is a legal proceeding that can release you from repaying debts, and it remains on your credit report from 7 to 10 years.

a)

True

b)

False

4.

If you pledge an asset (e.g., house, car) as collateral for an loan, it is considered what type of loan

a)

Unsecure loan

b)

Secure loan

5.

What type of financial institution requires you to be a member in order to keep your money there?

a)

Bank

b)

Credit Union

c)

Mortgage company

6.

What is the part of your monthly payment used to repay the money you borrowed?

a)

Principle

b)

Interest

c)

Deposit

7.

It does not make sense to shop around before opening a checking or saving account because all financial institutions offer the same services, fees, and interest rates.

a)

True

b)

False

8.

Mobile banking allows you to

a)

Use your computer to complete banking transactions

b)

Review your credit report

c)

Make purchases or payments with your cell phone.

9.

What is a remittance?

a)

Money transfer that goes to a bank or a person in another country

b)

Method of electronically transferring money from one bank to another

c)

An account feature that you must repay for only in months when you do not keep a minimum balance in your account

10.

The ____ is the best person to help you fill out a mortgage application

a)

Bank manager

b)

Loan officer

c)

Lender

11.

You must be careful to rent-to-own services, payday loans, and refund anticipation loans because they often cost more than an installment loan.

a)

True

b)

False

12.

What type of savings product is the best and safest place to keep money that you may need on short notice for an emergency expense?

a)

Checking account

b)

Savings account

13.

Why is credit important?

4 lines
14.

The Rule of 72 helps you determine _____?

a)

How long it will take for your savings to double in value with a variable or adjustable interest rate.

b)

How long it will take for your savings to double in value with a fixed interest rate

15.

What is the major difference between saving and investing?

a)

Most savings products are federally insured, while investments products are not

b)

It is used to make purchases at retail locations and ATM cash withdrawals.

c)

Ability to link a savings account to a checking account.