TEST 8

Question 1

What is a financial institution licensed to receive deposits and provide financial services

Answer 1

bank

Question 2

What is an independent federal agency that ensures deposits in bank accounts up to $250,000

Answer 2

Federal deposit insurance corporation

Question 3

What is an independent federal agency that ensures deposits in credit unions up to $250,000

Answer 3

National credit union administration

Question 4

What are people who don’t have bank accounts known as?

Answer 4

Unbanked

Question 5

What are people who have savings or checking accounts but still use alternative financial products and services known as?

Answer 5

Underbanked

Question 6

Most banks are all about helping you protect, access, and manage your ____

Answer 6

money

Question 7

What matters more?
the number in your bank account or the number on your credit report

Answer 7

bank account

Question 8

what can be a valuable partner as you work toward your money goals

Answer 8

bank

Question 9

Over how many Americans are unbanked?

Answer 9

14 million

Question 10

What are the 6 common reasons for not having a saving or checking accounts?

Answer 10

1. distrust
2. lack of financial literacy
3. unemployment
4. bank fees
5. blacklisted
6. lack of services

Question 11

What percent of borrowers use the cash from a payday lender for regular monthly expenses like rent or utilities?

Answer 11

70%

Question 12

you have to be____ with your money

Answer 12

intentional

Question 13

What are for profit financial institutions that accept deposits and offer a variety of deposit accounts and financial services

Answer 13

retail banks

Question 14

What is a nonprofit financial institution that is owned and operated by their members and offer deposit accounts and lending Services similar to a retail bank but at a lower cost?

Answer 14

credit union

Question 15

what is it when all transactions done online with no physical location

Answer 15

Online Banking

Question 16

What is an option offered by banks to cover overspending an account and then charge a fee for it

Answer 16

overdraft protection

Question 17

What is a penalty charge if the account holder spends more than their account balance causing the available balance to go below zero?

Answer 17

overdraft fee

Question 18

what is the most common and familiar type of bank?

Answer 18

retail bank

Question 19

** TRUE OR FALSE **
every bank is created equal

Answer 19

FALSE

Question 20

What provides market advice, explains regulations, helps business prices and sell stocks or bonds to their investors

Answer 20

investment banks

Question 21

What helps people who want to invest their money in stocks or mutual funds

Answer 21

Investment Service Institutions

Question 22

What are companies that provide investment advice, income tax preparation, and estate planning

Answer 22

financial advisement companies

Question 23

people who will find affordable and appropriate insurance plans for their clients

Answer 23

Insurance Brokers

Question 23

What helps people with specific advice related to comprehensive investing strategies?

Answer 23

wealth managment firms

Question 24

what kind of company provides lines of credit to consumers

Answer 24

credit card companies

Question 25

what are the **4** common ways that banks make money

Answer 25

1. interest on loans 2. ATM fees 3. overdraft fees 4. account fees

Question 26

what kind of bank service should you avoid

Answer 26

services that have to do with debt

Question 27

how quickly you can access the money in an account or the value of an asset without a penalty or fee

Answer 27

Liquidity

Question 28

what will you need to do to find the right bank for you

Answer 28

homework

Question 29

what are the **3** things you should identify when choosing a bank

Answer 29

1. kind of account you want 2. type of bank you want 3. features that matter most

Question 30

what is a lined and divided journal to record checking account activity

Answer 30

checking account register

Question 31

what is the option to low automatic electronic deposit of your payroll checks

Answer 31

direct deposit

Question 32

what is the process of making sure you and the bank agree on how much money is in your checking account

Answer 32

reconciling

Question 33

what should you look at if you really want to know what is important to someone

Answer 33

checkbook entries

Question 34

over drilling your account indicates what **2** things

Answer 34

laziness/ lack of responsibility

Question 35

what percent of customers regularly use online banking

Answer 35

71%

Question 36

what percent of customers regularly use mobile banking

Answer 36

43%

Question 37

Your money is safe it it is insured by what?

Answer 37

FDIC & NCUA