Introduction to Banking

Banks offer accounts to meet depositors needs. Which is not a traditional account offered by a bank?

• Retirement account
• Savings account
• Checking account
• Money market account

Banks offer protection on deposits when they are a part of this government regulating agency:

• Federal Reserve

• Federal Deposit Insurance Corporation (FDIC)

• The Small Business Administration (SBA)
• Security and Exchanges Commission (SEC)

While banks operate to earn a profit, credit unions provide banking services and are nonprofit entities

• True
• False

This type of bank account pays a higher rate of interest in exchange for leaving the money in the account for a longer term

• Checking account

• High-yeild savings account
• Certificate of Deposit (CD)

• Joint savings account

Mobile banking allows individuals to managine banking onilne. Which is not an advantage of mobile banking?

• It eliminates the need to budget and manage money
• It can be used to set up recurring payments
• It keeps a record of transactions that are made
• It can be used to make and receive payments to others

Which type of bank account typically has a minimum balance requirement and may offer a higher interest rate?

• Checking account

• Savings account

• Retirement account

• Money market account

What is the primary purpose of the Federal Reserve in the banking system?

• To insure deposits

• To regulate interest rates and manage the country's money supply

• To offer loans to small businesses

• To manage stock exchanges