Banking/Credit/Budgeting

What is the recommended amount of savings to provide a financial cushion for unexpected expenses?

• Six months of income

• One month of income

• Three months of income

• Two months of income

What amount triggers banks to report deposits to the US Treasury Department to prevent money laundering?

• $15,000

• $10,000

• $5,000

• $20,000

Which type of financial institution is not-for-profit and owned by its members?

• Payday loan company

• Credit union

• Commercial bank

• Brokerage firm

Which organization insures accounts in credit unions?

• IRS

• NCUA

• FDIC

• SEC

What is a more cost-effective option for cashing a check compared to a check cashing store?

• Credit union

• ATM

• Bank

• Payday loan

What is the role of the Federal Deposit Insurance Corporation (FDIC)?

• To regulate stock markets

• To insure bank deposits

• To manage national debt

• To insure credit union accounts

What type of account allows you to deposit money and earn interest over time?

• Loan account

• Savings account

• Checking account

• Credit account

How is a credit union different from a commercial bank?

• It is a nonprofit cooperative

• It is owned by shareholders

• It is profit-driven

• It charges higher fees

How do banks primarily make money?

• By offering insurance

• By charging interest on loans

• By trading real estate

• By selling stocks

What is the role of the Fed in relation to banks?

• To offer savings accounts

• To regulate and ensure soundness

• To provide loans to individuals

• To invest in real estate