Financial Institutions Review

Businesses rely on the services of financial institutions

• True

• False

Financial institutions collect money from clients and uses it for parties

• True

• False

In order to operate, a bank must receive a(n)

• loan

• charter

• contract

• approval from customers

To be recognized as a bank, a financial institutions must

• accept demand deposits

• make consumer and commercial loans

• buy currency and government securities

• all of the above

Which one is an example of a demand deposit account

• savings account

• checking account

A CD is a

• time deposit

• demand deposit

CDs can be withdrawn early

• True

• False

CDs cannot be withdrawn early without some financial penalty

• True

• False

Commercial loans are made to

• individuals

• businesses

Consumer loans are made to

• businesses

• individuals