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Financial Institutions Quiz

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

What is one of the main purposes of a financial institution?

a)

To provide entertainment

b)

To keep money safe and help manage it

c)

To sell groceries

d)

To teach sports

2.

Which of the following is a service provided by financial institutions?

a)

Checking accounts

b)

Movie rentals

c)

Gardening services

d)

Pet grooming

3.

What is an emergency fund?

a)

Money saved for a vacation

b)

Money kept in a liquid account for unexpected situations

c)

Money used for daily expenses

d)

Money invested in stocks

4.

What is the main purpose of the Federal Deposit Insurance Corporation (FDIC)?

a)

To create new banks

b)

To insure bank customers' deposits

c)

To provide loans to businesses

d)

To regulate stock markets

5.

What is the maximum amount covered by the FDIC per depositor per insured bank?

a)

$100,000

b)

$250,000

c)

$500,000

d)

$1,000,000

6.

What are two examples of other financial institutions mentioned in the material?

a)

Credit Unions & Savings and Loan Associations

b)

Banks & Investment Firms

c)

Insurance Companies & Stock Markets

d)

Real Estate Agencies & Pawn Shops

7.

What is a characteristic of Credit Unions according to the material?

a)

They are for-profit organizations

b)

They offer higher interest rates on loans than regular banks

c)

They are nonprofit financial cooperatives

d)

They are not insured by any fund

8.

What is the maximum amount insured by the National Credit Union Share Insurance Fund (NCUSIF) per account?

a)

$100,000

b)

$250,000

c)

$500,000

d)

$1,000,000

9.

What do Savings and Loan Associations (S & L) primarily do to earn money?

a)

Issue credit cards

b)

Issue home mortgages

c)

Sell insurance

d)

Offer stock trading

10.

What organization insures Savings and Loan Associations (S & L)?

a)

FDIC

b)

SEC

c)

IRS

d)

FTC