Risks and Benefits of Cash Management

What is a deposit?

• A type of loan

• A sum of money securely stored at a bank

• A financial service fee

• A bank employee

What do loans enable?

• Economic activities such as buying homes, starting businesses, and using credit cards

• Only the purchase of luxury items

• Solely the payment of taxes

• Exclusively the funding of vacations

Who is the party that loans the money in a banking transaction?

• The borrower

• The creditor/lender

• The depositor

• The bank manager

What is the relationship between a debtor and a creditor?

• The debtor lends money to the creditor

• The debtor borrows money from the creditor

• The debtor insures the creditor

• The debtor manages the creditor's account

Which of the following is a key service that ensures the safety of funds in a bank?

• Secure storage

• Free withdrawals

• High interest rates

• Free account management

Which type of account earns interest but has withdrawal limitations?

• Checking accounts

• Savings accounts

• Money market accounts

• CDs

Which of the following is a type of depository account?

• Credit card accounts

• Checking accounts

• Loan accounts

• Investment accounts

What is a common use of online banking?

• Playing video games

• Managing financial accounts

• Listening to music

• Watching TV shows

Which of the following actions can be performed with mobile banking?

• Transfer money

• Bake a cake

• Drive a car

• Paint a wall

What is a common activity in mobile banking?

• Transfer money

• Paint a picture

• Write a poem

• Sing a song