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WorksheetsW!SE - Banks and Banking
Total questions: 10
Worksheet time: 10mins
If a person makes a deposit of $10,000 or more into a bank account, the bank must notify the--
US Treasury Department.
Federal Deposit Insurance Corporation. (FDIC).
State Banking Commission
Federal Reserve Board.
Travelers checks, often used for vacations:
Are equivalent to credit cards
Are free at most banks
Function as cash and are easily replaced if lost
Are FDIC insured
Troy has $50 a month transferred electronically from his checking account to his savings account. This is an example of:
An installment payment
A savings plan
An ATM transaction
A debit card transaction
The term used to describe the ease and speed with which you can convert savings or an investment to cash is:
Convertibility
Principal
Liquidity
Rate of return
Frankie's savings account has earned a lot of interest. He wants to know if he must pay taxes on the interest earned. What would the IRS tell him?
Interest earned on savings accounts is not taxable
A sales tax will be charged on the interest earned
Savings account interest is taxable
If the interest is under $50, it is not taxable
Pat has a savings account and a car loan from a not-for-profit financial institution owned by its members. She is probably a member of what type of financial institution?
Credit union
Commercial bank
Savings and loan association
Investment club
Which financial product may pay a dividend?
Savings account
Money market account
Certificate of Deposit
Common stock
The best reason for depositing money in a bank or credit union savings account instead of keeping your money "under the mattress" is that:
Money deposited in savings accounts are F.D.I.C. insured
Most savings accounts earn a guaranteed rate of interest
Most savings accounts come with a free credit card
Money in a savings account can be accessed any time during the day or night
The National Credit Union Administration (NCUA) insures accounts in:
Credit unions
Commercial banks
Brokerage firms
Savings banks
Which financial product can you buy for $25, is safe, and will be worth $50 at a future date?
Series EE savings bond
Certificate of deposit
50 shares of ABC Co. stock
ABC Co. bond
