Banking Unit Test Preparation

Why does a bank pay interest to a depositor (also known as account holder)?

• The bank can use customer deposits to earn profits.

• It helps the bank invest in the local community.

• It is a requirement of the Federal Deposit Insurance Corporation (FDIC).

• It is a benefit of having a bank credit card.

Which of the following financial institutions is a not-for-profit organization?

• commercial bank

• savings and loan

• credit union

• investment bank

Customer Deposits in Credit Unions are insured by:

• FDIC

• FED

• IRSC

• NCUA

Which of the following is a benefit of using a debit card instead of a credit card?

• Expenses can be paid at a later date

• You can build your financial rating.

• There is no risk of going into debt.

• You can spend more money at a time.

Juan is graduating high school and wants to open an account at a financial institution with a wide variety of services including mobil and on-line banking. He wants to know that the institution has many locations nationwide and numerous ATMs around town. What type of financial intitution do you recommend?

• Commercial Bank

• Credit Union

• Savings & Loan

• Brokerage Firm

Ashley has a savings account and a car loan from a non-profit financial institution owned by its members. She is probably a member of what type of financial institution?

• Commercial Bank

• Credit Union

• Savings & Loan

• Brokerage Firm

The Federal Deposit Insurance Corporation (FDIC) insures accounts in:

• Brokerage Firms

• Credit Unions

• Commercial Banks and Savings & Loans

• Savings & Loans only

The phrase used for putting money into a savings account is:

• Verifying the account

• Balancing the account

• Making a deposit

• Making a withdrawal

Tags

CCSS.RI.11-12.3

CCSS.RI.11-12.5

CCSS.RI.8.3

CCSS.RI.9-10.3

CCSS.RI.9-10.5

Banks use savings account deposits to:

• Make their services and products attractive for new depositors.

• Pay for employee special products.

• Give loans to other consumers and businesses.

• Improve the quality of life in low-income communities.

Purchases made with your debit card are usually:

• Deducted immediately from your checking account.

• Deducted from your credit card balance.

• Added to your credit card balance.

• Put on your credit card bill as cash advance.