Financial Literacy Banking

What does a bank do for you?

• Keep your money safe while allowing you access to it

• Charge you interest on the money they keep for you

• Shine your shoes

• Give you money when you ask politely

How does a bank make money?

• Keep some of the money you deposit in a savings account

• Charge interest on loans

• Charge a tax for depositing money

• Sell lollipops to gullible customers

Putting money into a bank is called

• withdrawal

• interest

• deposit

• cashier's check

A bank can charge a fee for

• withdrawing money in certain ways

• overdrafts

• filing loan papers for a mortgage

• All of the above

A mortgage is a loan for

• a car

• a college education

• real estate

• a business plan

If you write a check for $100 but you only have $50 in your account...

• no one will care until the check comes to the bank

• you have just overdrafted your account

• you need to make a deposit before the check comes to the bank

• all of the above

matching your checkbook balance with the bank's balance is called:

• paying bills

• calling a loan

• reconciliation

• overdrafting

A bank charges fees for overdrafts. How can they make the most money on these fees?

• Process the biggest checks first in a daily batch

• Pay all the checks they can before charging monthly fees they charge every month

• Call and ask if it's ok that they charge you

• Process only the checks you have money for

A bank is a public service

• true

• false

A bank can charge any interest rates they want, maximizing profit

• true

• false