WorksheetsReady To Work #1 & #2
Total questions: 38
Worksheet time: 21mins
Which of the following are insured financial institutions? Select all that apply
Checks cashing service
Banks and thrifts
Credits and Unions
Pawn Shop
Which of the following is a good reason to use a bank?
Your money is insured up to the maximum amount allowed by law
Your money is safe from theft, loss and fire
You can access your money quickly and easily
All of the above
Which of the following steps are involved with maintaining a checking account? Select all that apply
Open the account
Make deposits and withdrawals
record interest and fees in your checking register
keep track of your balance
Which of the following might the bank want to see and or verify before you can open up a checking account?
Photo Identificaiton
Credit history
History of using checking accounts
All of the above
What is the main difference between checking and savings account?
a checking account allows you to write checks to pay bills and buy goods. You generally can not write checks on a savings account
you generally earn more interest on a checking account rather than a savings account
some banks may allow you to use your checking and or savings account to pay bills online or use your debit card
both types of accounts may have transaction fees for completing more than a certain number of transactions each month.
What banking services may be offered with some deposit accounts? Select all that apply
Money Orders
Free telephone and online banking
Discount on Loans
Free Checking
With online banking, you can access your accounts at any time
View your account balances
conduct transactions, such as transferring money between accounts, paying bills, or ordering checks
download information, such as your monthly statement
Change account information, like your address and phone number
All of the above
In which two of the situations below would you need to see the customer service representative at a bank?
Refer you to a person who can help you
Deposit your money for you
Take applications for loans offered at a bank
Answer general questions
The five advantages of using a financial institution are safety, convenience, cost, security, and financial future.
True
False
What type of account is typically insured by the FDIC?
Deposit
Non-Deposit
Deposit accounts generally offer which of the following banking services?
Direct Deposit
Telephone & online banking
ATM & Debit Cards
All of the above
Which type of financial institution requires you to be a member in order to keep your money there?
Banks and thrifts
credit unions
money markets
Individual retirement accounts
Which two of the following are deposit accounts?
Stocks
Checkings
Savings
Mutual Funds
A remittance is a:
Card onto which you can load money to be used for future purchases
money transfer that goes to a bank or a person in another country
document that is used like a check to pay a bill
method of electronically transferring money from one bank to another
A debit card:
is used to make purchases at retail locations and ATM cash withdrawals
Has a "buy now, pay later" feature, like credit cards
Is similar to a gift card from a retail store.
Who is the best person to help you fill out a mortgage application?
Customer Service Representative
Teller
Loan Officer
Branch Manager
What is Credit?
Money you borrow and must pay back
Free money that you do not have to pay back
Money you have saved for emergrencies
the balance left on a gift card after you have used it to pay for something
Select all that apply. Maintaining good credit is is important because it:
Can help you graduate from college
Allows you to carry more cash than usually
Allows you to buy expensive items, like a car, house or furniture and pay over time
Might cause your interest rates to be raised
what is a loan?
A charge by financial institution for maintaining or servicing your loan account
Money you borrow but must also repay
something valuable that you own and can sell for cash
The cost of borrowing money
Which type of loan is used to pay for personal expenses for you & your family? Select all that apply
Consumer installment loans
Credit Cards
Home Loans
A Loan for which of the following is most likely to be unsecured? Select all that apply
Home
car
Furniture
Education
Which of the following replaces a loan on your home in order to get a better interest rate?
Home Equity Loan
Home Equity Line of Credit
Home refinance loan
Home purchase loan
What type of interest rate changes periodically?
Fixed Rate
Variable Rate
Waning Interest
Dual Rate
What should you review and compare when shopping for a loan?
Annual Percentage Rate
Fees
Truth in Lending Disclosures
All of the above
What four factors do lenders generally us in their loan making decision?
Collateral, capacity, capital, and whether you purchase their credit protection insurance
Capital, character, overdraft protection and collateral
capacity, capital, collateral, and character
Character, collateral, capacity and credit limit
Getting credit is not cheap. However, which is usually the least expensive?
Rent to own services
Bank Loan
Payday Loan
refund Anticipation Services
If someone offers you a loan, what can you do to make sure it is a good deal?
Check to make sure the loan provider is reputable
Shop around with several loan providers and compare all terms and conditions of an offered loan
Make sure you can afford the loan payments
All of the above
If you buy something on credit, you must pay back the amount you borrowed
all at once
plus interest
according to the credit terms
b & C
a loan is the amount of money a financial institution charges for letting you use its money
True
False
the three main types of loans are
Customer installment loans
Credit cards
home loans
all of the above
What is used as collateral for a home loan?
The home
the furniture or furnishings
personal assets (car)
All of the above
Which of the following is an example of a secured loan?
Home loans and home equity loans
most credit cards
personal loans
student loans
What type of interest rate can change during the loan term?
fixed interest rate
variable interest rate
Which of the following must be included in the Truth in Lending Disclosure? Select all that apply
Amount financed
APR
Finance Charge
Total payments
Lenders will review the Four C's to determine whether you are a good credit risk. Which of the following refers to property or assets offered to secure the loan?
Capacity
Collateral
Capital
Character
what can you do to guard against predatory lending practices? Select all that apply
Deal with reputable loan providers
read and understand all terms and conditions of an offered loan
Accept offered credit before you know whether you can afford it
Accept the first loan offer you receive or the first one that sounds resonable
You must be careful of rent to own services, payday loans and refund anticipation loans because they often cost more than an installment loan?
True
False
Why is credit important?
It allows you to make a large purchase, such as a car or house and pay for it over time
it can be useful in times of emergencies
it is more convenient and safer than carrying large amounts of cash
All of the above
