Banking Unit Review 18

Which financial product typically pays the highest rate of interest?

• Savings account
• Certificate of deposit
• Money market account
• Common stock

Safe-deposit boxes are:

• A free benefit for accounts with deposits starting at $50,000
• Safe and can be accessed only by the owner of the box
• Available at all banks
• Convenient and accessible at any hour of the day or evening

The Fed” is short for

• The Federal Reserve System
• Congress
• FBI
• The Federal Deposit Insurance Corporation

The best reason for depositing money in a bank or credit union savings account instead of keeping your money “under the mattress” is that:

• Money deposited in savings accounts are F.D.I.C. insured.
• Most savings accounts earn a guaranteed rate of interest.
• Most savings accounts come with a free credit card.
• Money in a savings account can be accessed any time during day or night.

If a person makes a deposit of $10,000 or more into a bank account, the bank must notify the

• Federal Reserve Board.
• State Banking Commission.
• Federal Deposit Insurance Corporation (FDIC)
• U. S. Treasury Department.

The financial institution where Ms. Sanchez has her checking account will continue to pay out money for the checks she writes as long as:

• She uses checks from her checkbook
• The financial institution has sufficient funds
• There is enough money in Ms. Sanchez’s account to cover the amount of the checks
• She maintains a good record of deposits and handles her account responsibly

Financial services and products generally offered by banks and credit unions include:

• Real estate listings
• Legal services
• Savings and loans
• Business plan

Which documents should be stored in a safe-deposit box

• Checkbook statements.
• Current paycheck stubs.
• Copies of current and past budgets.
• Mortgage loan papers.

All are examples of advantages to being banked except?

• Access to money 
• Limited access to credit
• Safe/Insured 
• Convenience 

The Federal Reserve uses _____________________to stabilize the economy.

• fiscal policy
• tax policy
• monetary policy
• economic policy