WorksheetsBanks PreQuiz Review
Total questions: 30
Worksheet time: 37mins
A bank is a ______ company that connects _____ with _______.
non-profit; savers; borrowers
for-profit; lenders; savers
non-profit; lenders; savers
for-profit; savers; borrowers
When you deposit your savings into a bank account, the bank _______
keeps all of your money in a vault
gives all of your money to its employees
typically loses your money
lends most of the money to other people
Which of the following is NOT a reason why it is safer to keep your money in a bank account than it is to keep it in cash.
Cash can be stolen
Cash can be destroyed in fires
Bank accounts are FDIC insured
Customers can lose money when a bank is robbed
A debit card is linked to which type of bank account?
Checking
Savings
Certificate of Deposit
Money Market
The main difference between credit unions and banks is that credit unions _____
issue credit cards
monitor your credit score
are non-profit organizations
tend to have more branches and ATMs
Compared to banks, credit unions tend to pay _______ interest rates to depositors and charge ________ interest to borrowers.
lower; lower
lower; higher
higher; lower
higher; higher
A(n) ______ fee is charged when you buy something despite lacking enough money for it in your account. If you haven't signed up for a special type of coverage, the bank will decline the charge.
excess spending
insufficient funds
account maintenance
minimum balance
Banks will charge a(n) ________ fee just for keeping your money in the account. Banks will often waive this fee, however, if you meet certain criteria, e.g. you keep at least a certain amount of money in the account.
account maintenance
overdraft
excess transactions
wire transfer
If you have signed up for ________ coverage with your bank and you make a purchase or write a check that results in your account balance being negative, the purchase or check will still go through, but you will be charged a fee.
wire transfer
excess spending
overdraft
minimum balance
A bank statement is typically issued on a ______ basis
daily
weekly
monthly
yearly
If you deposit $100 into an account that pays 3% annual interest, how much will be in the account one year later (assuming you make no deposits or withdrawals during the year)?
$97
$3
$1
$103
$130
Which situation describes a financial institution as a lender?
Juliette deposits her paycheck in a savings account at a bank.
Pauline earns interest each month on the money in her savings account.
Mitchell borrows money from his bank to buy a car.
Landry withdraws money from his checking account to purchase some new clothes.
Bank of America, Wells Fargo, and Chase are examples of...
credit unions
retail banks
The government agency that protects bank depositors' money up to $250,000.
FDIC
FBI
A ____ is a banking institution owned by its members, who typically share some common interest.
Credit Union
Retail Bank
The current chairperson of the Federal Reserve is:
Jerome Powell
Alan Greenspan
Ben Bernanke
Janet Yellen
How many governors make up the Board of Governors?
12
4
What is the Fed's goal when setting policy? (It's the Dual Mandate)
Strong Stock Market
Low Taxes
Full Employment
Price Stability
True or False: Individuals and small businesses are allowed to have bank accounts or do banking with the Fed.
True
False
_____ is the price that borrowers pay to borrow money
interest rate
_____ is how much money each bank is required by the Fed to keep on hand
reserve requirement
_____ is the interest rate the banks charge their best customers
prime rate
_____ is the amount of money circulating in the economy
money supply
How many regional Reserve Banks are there in the Federal Reserve System?
6
9
12
15
Which of these is a Federal Reserve note?
A dime
A check
A credit card
A 20 dollar bill
Who appoints the members of the Board of Governors?
The President of the United States
The Senate
The Federal Reserve Banks
The Board of Directors
What does FOMC stand for?
Federal Official Money Committee
Federal Open Market Committee
Federal Organization for Monetary Control
Federal Operations and Management Committee
