WorksheetsUnderstanding Financial Institutions and Services
Total questions: 10
Worksheet time: 5mins
What is the main purpose of a financial institution?
To sell clothes and toys.
To help people save, lend, exchange, invest, and insure money.
To provide entertainment.
To build houses.
Which two common services do financial institutions offer people?
Car washing and pet grooming.
Savings accounts and checking accounts.
Restaurant services and movie tickets.
Building roads and bridges.
What is the extra money an institution adds to your savings account called?
A bonus
A fee
Interest
A gift
Why do checking accounts usually offer little to no interest?
Because the money is used for long-term investments.
Because people need to access their money quickly.
Because checking accounts are only for businesses.
Because they are not safe places to keep money.
Besides keeping money safe, what is one way financial institutions use deposited money?
To buy new buildings for themselves.
To give out loans for things like cars or homes.
To pay for advertising on TV.
To give it all back to the government.
Which of these services do banks typically offer?
Only savings accounts.
Only personal loans.
Savings accounts, checking accounts, and various types of loans.
Only credit cards.
What is a main difference between banks and credit unions?
Banks offer more types of loans.
Credit unions are owned by their members and are not for profit.
Banks give higher interest on savings accounts.
Credit unions charge higher fees for services.
What protects your money if a bank or credit union fails?
The bank's CEO.
Deposit insurance from organizations like FDIC or NCUA.
Your personal savings.
Other customers' money.
What do brokerage firms mainly deal with?
Savings accounts and personal loans.
Home loans and auto loans.
Investment options like stocks, bonds, and mutual funds.
Cashier's checks and debit cards.
How do insurance companies help people?
They give small loans to everyone.
They collect money from many people and pay a large sum to those who experience financial danger.
They offer high-interest savings accounts.
They help people buy houses.
