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Chapter 11 - Who to Trust

Total questions: 22

Worksheet time: 19mins

Name
Class
Date
1.

Accounting is a service of tax form preparation, tax planning, and business tax consulting.

a)

True

b)

False

2.

There are three major categories of banks.

a)

True

b)

False

3.

A brokerage firm brings buyers and sellers of stock and other securities together and facilitates transactions for a fee.

a)

True

b)

False

4.

The Gramm-Leach-Bliley Financial Services Modernization Act of 1999 allowed banks, insurance companies, and securities firms to affiliate and sell each other's products.

a)

True

b)

False

5.

A certificate of deposit is a high risk and therefore high return investment that usually pays a lower interest rate than a traditional savings account.

a)

True

b)

False

6.

What is NOT considered to be a consumer loan?

a)

Retail Goods

b)

Travel

c)

Machinery

d)

Education

7.

What do real estate services include?

a)

Property valuation

b)

Handling transactions for the purchase and sale of real property

c)

Home staging

d)

All of the above

8.

What act allowed banks to use electronic images of checks instead of paper?

a)

Check 21 Act

b)

Banking Act of 2001

c)

1933 Banking Act

d)

Expedited Funds Availability Act

9.

What is the life expectancy of a $1 bill?

a)

1 year

b)

22 months

c)

36 months

d)

3 years

10.

What is considered to be a government loan?

a)

Schools

b)

Roads

c)

Public buildings

d)

All of the above

11.

Define the following: Certificate of deposit.

4 lines
12.

Define the following: Financial services.

a)

Economic services provided by a range of organizations that manage money, such as banks, insurance companies, credit unions, investment companies, credit card companies, and real estate companies.

b)

A type of government tax collected from individuals and businesses.

c)

A set of physical goods traded in international markets.

d)

A legal document required to start a business.

13.

Define the following: eBanking.

a)

A digital way of making financial transactions with your bank or other financial institutions.

b)

A method of printing bank statements at home.

c)

A way to physically visit your bank for every transaction.

d)

A process of exchanging goods for cash at a local market.

14.

Define the following: Credit union.

a)

A co-operative financial institution, similar to a bank, usually controlled by its members.

b)

A government agency that regulates stock markets.

c)

A private investment firm that manages hedge funds.

d)

A type of insurance company owned by policyholders.

15.

Define the following: Bank.

4 lines
16.

What are three benefits of eBanking?

a)

Convenience, 24/7 access, and faster transactions

b)

Higher interest rates, more paperwork, and limited access

c)

Slower processing, increased fees, and less security

d)

Manual record keeping, limited services, and no online support

17.

The Federal Deposit Insurance Corporation (FDIC) was created in which year, and what is its primary purpose?

a)

1933, to insure bank deposits and maintain public confidence in the banking system

b)

1929, to regulate stock markets

c)

1945, to provide loans to small businesses

d)

1913, to print currency

18.

Two duties of The Fed are:

a)

Setting interest rates and regulating banks

b)

Collecting taxes and making laws

c)

Issuing driver's licenses and passports

d)

Running public schools and hospitals

19.

What is the purpose of a safe deposit box?

a)

Renting a safe deposit box can help you secure items that would be very difficult to replace, like marriage and birth certificates.

b)

It is used to store perishable food items for long periods.

c)

It is a place to keep your car keys for easy access.

d)

It is used to deposit cash for daily withdrawals.

20.

What are three safety measures for eBanking?

4 lines
21.

Antonio does not like carrying cash or writing checks, but he wants to have access to his money in his account for daily use. What service that fits his preferences can a bank offer him?

a)

saving account

b)

Credit Card

c)

Debit Card

d)

Deposit Box

22.

A financial institution is an organization that provides services related to _____.

a)

clothing

b)

money

c)

property

d)

insurance