Financial Institutions Quiz

Which of the following is NOT one of the four common financial institutions mentioned?

• Commercial banks

• Savings and loan associations

• Credit unions

• Insurance companies

What is a characteristic of savings accounts and certificates of deposits (CDs)?

• Convenience and safety for account holders

• Safe places to let money grow; interest is earned on deposits

• Easy access to money from multiple locations

• Enable account holders to deposit money or pay bills automatically

What service do brokerage firms provide?

• Offer checking accounts

• Provide low-interest loans

• Buy and sell stocks for customers

• Offer savings accounts

What does deregulation in the financial industry mean?

• Increasing restrictions on financial institutions

• Removing some restrictions that previously affected the industry

• Limiting the services offered by financial institutions

• Increasing the number of financial institutions

What is the main benefit of online banking?

• Access to physical bank branches

• Immediate availability of transaction information online

• Higher interest rates on savings

• Free financial advice

What does deposit insurance guarantee?

• Unlimited deposit protection

• Insurance for loans

• Deposits insured by the federal government up to $250,000

• Free checking accounts

Which agency provides deposit insurance for banks?

• FDIC

• IRS

• SEC

• NCUA

What is the purpose of a mortgage?

• To borrow money for a new car

• To borrow money for home improvement

• To borrow money for the purchase of a home

• To borrow money for education

What type of loan is typically used to pay for college education?

• Home Equity Loans

• Student Loans

• Small Business Loans

• Mortgages

What is the characteristic of retirement accounts like IRAs and SEPs?

• They offer high-risk investments

• They enable tax-deferred savings for retirement

• They provide immediate liquidity

• They are only available to government employees