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Career Prep Unit 4 Review

Total questions: 33

Worksheet time: 17mins

Name
Class
Date
1.

What is the amount the FDIC insures deposits in a commercial bank or credit union?

a)

Up to $250,000

b)

Up to $100,000

c)

Anything over $250,000, but nothing below $250,000

d)

The amount is unlimited

2.

Credit Unions usually pay a ___________ (Fill in the blank)interest rate on savings accounts and charge a _______ (Fill in the blank)interest rate on loans than commercial banks.

a)

higher; higher

b)

higher; lower

c)

lower; lower

d)

lower; higher

3.

Which of the following is an example of a payment service?

a)

savings account

b)

credit card

c)

checking account

d)

money market account

4.

Which of the following is an example of a savings service?

a)

direct deposits

b)

credit card

c)

checking account

d)

money market account

5.

Which of the following is an example of a loan service?

a)

direct deposit

b)

credit card

c)

checking account

d)

money market account

6.

Which of the following is an example of an electronic banking service?

a)

direct deposit

b)

credit card

c)

checking account

d)

money market account

7.

Which of the following is not an example of an electronic banking service?

a)

credit card

b)

direct deposit

c)

Internet banking

d)

ATM machines

8.

Which of the following is not an example of a loan service?

a)

credit card

b)

mortgage

c)

automobile loan

d)

checking account

9.

Which of the following is not an example of a savings service?

a)

traditional savings account

b)

certificate of deposit

c)

money market account

d)

checking account

10.

Who owns a bank?

a)

the members

b)

shareholders

c)

the customers of the bank

d)

the US government

11.

Who owns a credit union?

a)

the US government

b)

shareholders

c)

the members of the credit union

d)

The creditors

12.

How old must you be in Alabama to open a checking or savings account without someone to co-sign?

a)

17

b)

19

c)

16

d)

18

13.

Which of the following is not insured by FDIC insurance?

a)

traditional savings account

b)

certificate of deposit

c)

money market account

d)

mortgages

14.

Which of the following types of financial institutions is considered non-profit and owned by its members?

a)

Banks

b)

Credit unions

c)

Payday lenders

d)

Mortgage companies

15.

Which of the following types of financial institutions provides short-term loans at an extremely high interest rate?

a)

banks

b)

payday lenders

c)

mortgage companies

d)

credit unions

16.

Which of the following types of financial institutions is the best choice for customers to find a loan to purchase a home?

a)

banks

b)

payday lenders

c)

check cashing services

d)

mortgage companies

17.

How do banks and credit unions make a profit?

a)

They charge their customers a fee for the service.

b)

They charge a high interest rate.

c)

They charge a higher interest rate than they pay in savings account interest.

d)

They charge a "finder's fee" to the bank who eventually loans money to the customer.

18.

How do check cashing services make a profit?

a)

They charge a higher interest rate than they pay in savings account interest.

b)

They charge their customers a fee for the service.

c)

They charge a "finder's fee" to the bank who eventually loans money to the customer.

d)

They charge a high interest rate.

19.

Which of the following types of financial institutions cash checks mainly for people who don't have checking or savings accounts?

a)

credit unions

b)

banks

c)

payday lenders

d)

check cashing services

20.

How do mortgage companies make a profit?

a)

They charge a "finder's fee" to the bank who eventually loans money to the customer.

b)

They charge a high interest rate.

c)

They charge a higher interest rate than they pay in savings account interest.

d)

They are non-profit companies, so they don't make a profit.

21.

Which of the following is NOT a typical fee charged by a bank or credit union?

a)

Notary public fee

b)

Overdraft fee

c)

Minimum balance fee

d)

ATM fee

22.

Which of the following is NOT a way to avoid an overdraft charge?

a)

Maintain a higher balance

b)

link your checking account to a savings account

c)

visit the branch within 1 business day after the overcharge to have the fee removed.

d)

maintain an accurate balance in your checking account.

23.

Banks are always trying to remove costs. Which of the following strategies fees are designed to encourage you save the bank money?

a)

Overdraft fee

b)

debit card fee

c)

ATM fee

d)

Paper fee

24.

Which of the following best describes a cashier’s check?

a)

a check drawn from the customer’s funds

b)

a check that is drawn from the bank’s own funds

c)

an official of integrity appointed by state government

d)

a small box or container store inside a bank’s vault

25.

High service fees

a)

Often disguised with a low price

b)

Data sealed in a code

c)

Designed to block unauthorized access while permitting outward communication

d)

A type of fraud that uses a person's private identifying information

26.

Weak password

a)

Includes all of the following: an uppercase letter, a lowercase letter, a number, and a special character such as $@*:

b)

Your birthdate, your initials, anything with your birth year, family members names, pet names, and qwerty

27.

Identity Theft

a)

Set of temporary files your web browser stores

b)

Data sealed in a code

c)

A type of fraud that uses a person's private identifying information

d)

Often disguised with a low price

28.

Antivirus software

a)

Set of temporary files your web browser stores

b)

Software used to prevent, detect and remove malicious software

c)

Usually involves misrepresenting a product in order to trick a customer into making a purchase

d)

Designed to block unauthorized access while permitting outward communication

29.

Strong password

a)

Includes all of the following: an uppercase letter, a lowercase letter, a number, and a special character such as $@*:

b)

Your birthdate, your initials, anything with your birth year, family members names, pet names, and qwerty

30.

Firewall

a)

Designed to block unauthorized access while permitting outward communication

b)

Often disguised with a low price

c)

Software used to prevent, detect and remove malicious software

d)

Set of temporary files your web browser stores

31.

Browser cache

a)

Designed to block unauthorized access while permitting outward communication

b)

Often disguised with a low price

c)

Software used to prevent, detect and remove malicious software

d)

Set of temporary files your web browser stores

32.

Fraud

a)

Designed to block unauthorized access while permitting outward communication

b)

Usually involves misrepresenting a product in order to trick a customer into making a purchase

c)

International deception of a person or entity by another made for monetary or personal gain

d)

Data sealed in a code

33.

Unethical Sales Practices

a)

International deception of a person or entity by another made for monetary or personal gain

b)

Usually involves misrepresenting a product in order to trick a customer into making a purchase

c)

Set of temporary files your web browser stores

d)

A type of fraud that uses a person's private identifying information