WorksheetsFinancial Institutions and Banking Review
Total questions: 39
Worksheet time: 20mins
What are the main types of depository institutions?
Investment banks, mortgage companies, insurance companies
Hedge funds, mutual funds, pension funds
Commercial banks, credit unions, Online Only Banks
Online lenders, pawnshops, payday lenders
Explain the functions of depository institutions.
Depository institutions only accept deposits
Depository institutions primarily sell goods
Depository institutions focus on entertainment services
Depository institutions accept deposits, provide loans, and offer financial services.
How do depository institutions contribute to the economy?
Depository institutions contribute to the economy by discouraging savings and promoting excessive borrowing.
Depository institutions contribute to the economy by engaging in risky investments that destabilize financial markets.
Depository institutions contribute to the economy by hoarding funds and limiting access to borrowers.
Depository institutions contribute to the economy by facilitating the flow of funds between savers and borrowers, thereby promoting investment and consumption.
What is the primary difference between banks and credit unions?
Regulatory oversight
Ownership structure
Types of services offered
Location of branches
Why are depository institutions important for individuals and businesses?
Depository institutions do not offer any financial services
Depository institutions hinder economic growth
Depository institutions provide a safe place to store money, offer financial services, facilitate transactions, and stimulate economic growth.
Depository institutions are only for the wealthy
Describe the role of depository institutions in the financial system.
Depository institutions only accept deposits from individuals
Depository institutions primarily focus on providing insurance services
Depository institutions do not play a role in facilitating payments
Depository institutions accept deposits, provide loans, facilitate payments, and offer financial services to individuals and businesses.
How do depository institutions help in mobilizing savings?
Depository institutions do not handle savings
Depository institutions offer various deposit accounts to individuals, providing a safe place for savings which can be used for loans and investments.
Depository institutions discourage individuals from saving
Depository institutions only focus on lending money
What are some examples of depository institutions?
Commercial banks, savings and loan associations, credit unions, mutual savings banks
Investment banks
Pawn shops
Payday lenders
Explain the concept of deposit insurance and its importance.
Deposit insurance is a service that guarantees high returns on investments.
Deposit insurance is a tax imposed on depositors by banks.
Deposit insurance is a financial guarantee provided by governments to protect depositors in case a bank fails.
Deposit insurance is a type of investment account offered by financial institutions.
What role do depository institutions play in providing loans to customers?
Depository institutions only provide loans to their depositors.
Depository institutions rely on government funding to offer loans to customers.
Depository institutions accept deposits from customers and use those funds to provide loans to other customers.
Depository institutions primarily invest in the stock market instead of providing loans.
Compare and contrast the services offered by traditional banks and online banks.
Traditional banks offer in-person services with physical branches and ATMs, while online banks provide digital services with convenience and better rates.
Traditional banks have higher interest rates compared to online banks.
Traditional banks only offer online services, while online banks provide physical branches for in-person transactions.
Online banks have limited security measures, whereas traditional banks offer robust protection.
What are some challenges faced by depository institutions in the modern financial landscape?
Increased regulatory requirements, cybersecurity threats, competition from non-traditional financial services, low interest rates, and technology adaptation.
Lack of competition from non-traditional financial services
Rising interest rates
Decreased regulatory requirements
What are some emerging trends in the depository institutions sector?
Cryptocurrency adoption, Traditional brick-and-mortar branches, Cashless transactions
Digital banking, cybersecurity, AI and automation, sustainable banking practices
What may the bank do with the money in your savings account?
Use it to create a sculpture in the bank
Let you take it out whenever you want with your debit card
Use it to throw a party
Use it to give out loans to other customers
A debit card is paid by or linked to your...
Pet fish
Savings account
Budget
Checking account
Even though I may use online banking to keep track of my balance, it is still good to check the monthly statement because (select all):
Verify withdrawals
Verify deposits
Ensure there are no bank fees
Learn about all bank products
Select all of the ways that I can deposit funds into my checking account
Direct deposit from employer
P2P transaction from a friend
Cash at the ATM
Cash at the Teller
Cash through the mobile app
If I Opt-Out of Overdraft Coverage, it means that I will not be able to make a transaction to overdraw my account with my debit card, even if I need the funds.
True
False
If I Opt-In to allow overdrafts to happen with my debit card, it means more revenue for the bank if I make a mistake and overdraw by using my card
True
False
One way to deposit to my account is
writing a check
using my check card to purchase at a store
using the mobile app to take a picture of the front and back of a check
Withdrawing cash at a teller
A P2P payment is
A check from grandma for your birthday
A transfer between two individuals
A way to pay with my checking in a store
Problems 2 Problems
FDIC coverage protects my money from fraudulent account activity
True
False
You can access (withdraw) the money in your checking account by...
Using the cash grandma gave you to pay at the grocery store
Paying bills with a pre-paid debit card
Transferring money though your online account
Using your credit card to buy a PS5
Are contactless payments more secure than magnetic strip payments?
No, they are less secure
Yes, they are more secure
They have the same level of security
It depends on the retailer
What are some other contactless payment options?
Using cash or checks
Using PayPal Mobile, Google Pay, or Apple Pay
Using a magnetic strip card
Using a pin number or signature
What are contactless payments?
Payments made with a magnetic strip
Payments made with a pin number or signature
Payments made by inserting the card into a special slot
Payments made wirelessly with a special chip
Sam put $350 that he received as a birthday gift in his checking account. Where in his checkbook register should he write this amount?
in the PAYMENT or WITHDRAWAL AMOUNT column
in the DEPOSIT AMOUNT column
in the BALANCE column
in the FEE column
Where on a check should you write the name of the payee?
part A
part B
part C
Where should you endorse a check?
on the back of the check
on the front of the check
in the check register
Which is the correct way to write $850.05 in words on a check?
eight hundred fifty dollars and five cents
eight hundred fifty and five hundredths dollars
eight hundred fifty and 05/100
Which tool helps you record your transactions?
check leaf
checking account
check register
Doing this will affect your checking account balance at the bank immediately
using the ATM to withdraw cash
writing a check to pay your landlord
depositing a check at the bank's drive-up window
using a credit card
This will affect your bank balance whether or not you are aware of when it happens
direct deposits and automatic withdrawals
your landlord deposits your check into his account
monthly bank fees, overdraft fees, low balance fees
All of the above
Which is a reason to have direct deposit?
Your check is deposited faster
Your pay is higher
You don't have to pay taxes
You get paid more often than employees without direct deposit
Why would companies prefer you have direct deposit?
It costs them more and they consider it a perk
It is cheaper for them not to have to print paper stubs
They will have to mail out the pay stubs
They don't have to pay you as much on an hourly basis
What is the first step toward reconciling your checkbook register?
Compare the balance amount in your check register with the balance amount in your bank statement.
Compare the balance amount in your check register with the deposit amount in your bank statement.
Compare the balance amount in your check register with the total amount of all canceled checks.
Lisa has entered a check payment of $213.75 in her checkbook. If the old balance was $794, what is her latest balance?
$1,007.75
$581.75
$580.25
Which tool helps you record your transactions?
check leaf
checking account
check register
