Banks

A bank is a ______ company that connects _____ with _______.

• non-profit; savers; borrowers

• for-profit; lenders; savers

• non-profit; lenders; savers

• for-profit; savers; borrowers

When you deposit your savings into a bank account, the bank _______

• keeps all of your money in a vault

• gives all of your money to its employees

• typically loses your money

• lends most of the money to other people

Which of the following is NOT a reason why it is safer to keep your money in a bank account than it is to keep it in cash.

• Cash can be stolen

• Cash can be destroyed in fires

• Bank accounts are FDIC insured

• Customers can lose money when a bank is robbed

Which of the following lists the types of bank accounts in order from lowest interest rate to high interest rate?

• Savings, Checking, CD

• CD, Savings, Checking

• Checking, CD, Savings

• Checking, Savings, CD

Which of the following lists the types of bank accounts in order of how quickly your money can be accessed - from least accessible to most accessible?

• Savings, Checking, CD

• CD, Savings, Checking

• Checking, CD, Savings

• Checking, Savings, CD

A debit card is linked to which type of bank account?

• Checking

• Savings

• Certificate of Deposit

• Money Market

The main difference between credit unions and banks is that credit unions _____

• issue credit cards

• monitor your credit score

• are non-profit organizations

• tend to have more branches and ATMs

Compared to banks, credit unions tend to pay _______ interest rates to depositors and charge ________ interest to borrowers.

• lower; lower

• lower; higher

• higher; lower

• higher; higher

A(n) ______ fee is charged when you buy something despite lacking enough money for it in your account. If you haven't signed up for a special type of coverage, the bank will decline the charge.

• excess spending

• insufficient funds

• account maintenance

• minimum balance

Banks will charge a(n) ________ fee just for keeping your money in the account. Banks will often waive this fee, however, if you meet certain criteria, e.g. you keep at least a certain amount of money in the account.

• account maintenance

• overdraft

• excess transactions

• wire transfer