Banking and Finance Quiz

FDIC-Federal Deposit Insurance Corporation. The federal government will insure ______ of your savings in deposits with bank accounts and credit unions should the bank fail.

• $500,000
• $250,000
• $100,000
• $1,000,000

What is a financial institution?

• A financial institution is a type of restaurant that serves only desserts.
• A financial institution is a type of transportation service.
• A financial institution is a company that provides financial and monetary transactions

• A financial institution is a place where people store their personal belongings.

What is fractional reserve banking?

• Fractional reserve banking is a system where banks keep all customer deposits on hand.
• Fractional reserve banking is a banking system in which banks are required to keep only a fraction of customer deposits on hand and can lend out the rest.
• Fractional reserve banking is a system where banks are not allowed to lend out any customer deposits.
• Fractional reserve banking is a system where banks are required to keep double the amount of customer deposits on hand.

What is a bank deposit?

• A bank deposit is when a bank invests money in the stock market.
• A bank deposit is when a sum of money is placed into a bank account.
• A bank deposit is when money is withdrawn from a bank account.
• A bank deposit is when a bank lends money to a customer.

What is a bank run?

• A bank run is when a large number of customers withdraw their deposits from a bank due to fear of a bank failure

• A bank run is a term used to describe a bank's marketing campaign.
• A bank run is a type of financial software used by banks.
• A bank run is a marathon organized by a financial institution.

What does NCUA stand for?

• National Credit Union Administration

• National Consumer Union Association

• National Credit Union Association

• National Consumer Union Administration

What is the function of the National Credit Union Administration?

• Regulating and supervising federal credit unions
• Enforcing international trade agreements
• Managing national parks
• Issuing national currency

A sum of money that is lent to an individual/group with the expectation of repayment with interest-

• Debt
• Loan
• Advance
• Gift

What is interest?

• Interest is the cost of borrowing money or the return on invested capital over time.
• Interest is the profit made from investing in stocks.
• Interest is the amount of money you owe to the bank.
• Interest is the money you earn from selling goods.

Principle refers to this in banking

• Original amount of money borrowed or invested
• Loan term
• Bank account number
• Interest rate