Banking Unit Flashcard 2024 - v2

Front

Is it ok for Ethan to leave the amount portion of the check blank for his purchase at the bookstore?

Back

false

Front

Which organization insures checking accounts at a bank? Options: NCUA, FDIC, FTIC, NAACP

Back

FDIC

Front

Which compounding frequency will earn the MOST money for a savings account? Options: Compounding 1 time per year, Compounding quarterly, Compounding monthly, Compounding daily.

Back

Compounding daily

Front

What is a good rule of thumb for saving money after receiving a paycheck?

Back

Put aside money for savings each month

Front

Typically, Priya must be a member of a credit union to use its financial services.

Back

True

Front

Do all financial institutions and banks charge the same types of fees?

Back

False

Front

Imagine Charlotte has invested in a certificate of deposit at her local bank. This means...

Back

Her deposit earns interest over a term

Front

Principle (in the context of saving money for a college fund)

Back

The initial money that Emma has saved and deposited

Front

Imagine Nora deposits $1,000 in her bank. The bank then uses this deposit to give out loans. This process is an example of how banks create money using the

Back

Fractional Reserve System

Front

What are the characteristics of commercial banks?

Back

They are for-profit businesses, offer a wide variety of financial services, and tend to have good online banking options.