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WorksheetsUnit 6 Quiz: Financial Institutions
Total questions: 10
Worksheet time: 5mins
What is the role of the Federal Deposit Insurance Corporation (FDIC)?
Insuring deposits in bank accounts up to $250,000
Regulating online banking transactions
Providing credit to unbanked individuals
Offering overdraft protection services
What is the main difference between retail banks and credit unions?
Credit unions are for-profit institutions
Retail banks offer lower cost deposit accounts
Credit unions are owned and operated by their members
Retail banks are insured by the NCUA
What is the main downside of online-only banks?
They have physical branch locations
They are insured by the FDIC
They offer overdraft protection services
All transactions are done online
What is the purpose of overdraft protection offered by banks?
To cover overspending in an account
To provide insurance for deposits
To charge a fee for overspending
To offer lower cost lending services
Aria, Scarlett, and Arjun are managing their finances. They are discussing the function of a checking account register. What do you think is its function?
To track their investment banking activities
To reconcile their checking account balance
To record their credit card transactions
To insure their deposits in credit unions
What is the main difference between savings and money market accounts?
Savings accounts have higher interest rates
Money market accounts act as a high-bred between checking and savings accounts.
Savings accounts have lower risk
Money market accounts have lower minimum balance requirements
Elijah noticed some unusual activities in his banking simulator. As a bank employee, what could be a sign of fraud that he should look for?
Tracking payments and bill pay
Reconciling checking account balance
Automatic electronic deposit of payroll checks
Unusual account activity or unauthorized transactions
What role did banks play in the 2008 financial crisis?
They provided insurance for deposits
They offered overdraft protection services
They regulated online banking transactions
They engaged in risky lending and investment practices
Why was it necessary for the government to intervene in the 2008 financial crisis?
To offer lower cost deposit accounts
To provide credit to unbanked individuals
To regulate online banking transactions
To prevent the collapse of major financial institutions
If you see "pending" on an account charge, that means. . .
It is suspected of being a fraudulent charge
It hasn't been fully processed yet
The payment was declined
You need to make a deposit before it is paid
