Unit 7 Review

When you save money in a piggy bank to buy a new cell phone, this is most like the financial institution service of ___________________.

• Lending

• borrowing

• saving

• investing

Most banks today go way beyond just offering checking and savings accounts. Many offer investment services and financial advisors.

• True

• False

When a bank provides their customers a place to earn money over the long term by allowing other companies to use their money, they are offering the financial service of _____________

• saving

• investing

• spending

• borrowing

Cory gives his friend money to buy a cheeseburger since he forgot his wallet at home, but expects to be repaid. This  represents the financial service of:

• lending

• investing

• saving

• borrowing

Which of these is NOT covered by FDIC at a commercial bank?

• certificates of deposit

• checking accounts

• savings accounts

• shares of stock

Which of these is the first step in opening a new bank account?

• ordering your checks

• balancing check book

• filling out application

• taking out loan

Bank statements are monthly records of the activity in your bank account.

• True

• False

A friend is going to college and will need a bank account to use for everyday transactions. Which type of bank account should they choose?

• Savings account

• ATM account

• Checking account

• Money Market account

One benefit of a savings account is that you can earn interest on your deposits.

• True

• False

With a savings account, _____________.

• You are allowed an unlimited number of transactions each month

• You have a greater minimum balance than with other accounts

• You can access your money whenever you want

• You earn the highest possible interest rate