Banking 101

Front

All of the following are ways Banks make money EXCEPT: Interest charged on loans, Fees on products and services, Investments made by the bank, Donations made by citizens

Back

Donations made by citizens

Front

Banks enable point of purchase transactions through products like debit cards.

Back

True

Front

When you borrow money from a bank to purchase a new car, you get paid interest from the bank.

Back

False

Front

The FDIC helps make banking safer by

Back

Insuring deposits up to $250,000 against bank failure

Front

Banking is a purely American institution (i.e. people in other countries don't use banks).

Back

False

Front

When you make a deposit into a savings account at a bank, you usually get paid interest.

Back

True

Front

Banking is something you only need to do once you've made a lot of money.

Back

False

Front

Through loans like auto loans and mortgages, banks enable consumers to make large purchases without having to save 100% of the purchase price. True or False?

Back

True

Front

When you deposit money into a bank, the bank will do all of the following EXCEPT:
- use your money to fund loans to other consumers
- use your money to make investments
- do nothing with your money except hold it per FDIC rules

Back

do nothing with your money except hold it per FDIC rules

Front

Can banks charge transaction and/or account fees as another source of income to the bank?

Back

True