Intro to Depository Institutions

Question 1

You make a loan to a corporation to be paid back later with interest to you by buying

Accepted Answer

bonds

Question 2

A secure device where you can store valuables or important documents at a bank is called

Accepted Answer

a safe deposit box

Question 3

Interest is a fee the bank pays for using your money.

Accepted Answer

True

Question 4

Savings accounts have quicker access to your money than checking accounts.

Accepted Answer

False

Question 5

Which of the following usually pay higher interest on savings or share accounts?

Accepted Answer

Credit Union

Question 6

Contactless payment is a service you can set up with your bank to pay your bills automatically

Accepted Answer

False

Question 7

Which of the following banks do not have physical locations?

Accepted Answer

Online Banks

Question 8

Online banking is only available through a commercial bank.

Accepted Answer

False

Question 9

Which of the following would influence a person's choice for a bank?

Accepted Answer

All of the above

Question 10

Online banking lets you pay bills, cash checks, make deposits, and transfer money

Accepted Answer

False

Question 11

Securities are

Accepted Answer

stocks and bonds issued by corporations or the government

Question 12

As long as you stay within the coverage limits, your money is safe in insured commercial banks

Accepted Answer

True

Question 13

Which of the following was set up primarily to provide home loans?

Accepted Answer

savings and loan associations

Question 14

Ownership in a corporation is created by buying

Accepted Answer

stocks

Question 15

Which of the following is owned by its depositors?

Accepted Answer

Credit Union

Question 16

Which of the following provides the greatest number of services to its customers?

Accepted Answer

Commercial Banks

Question 17

The NCUA can insure all types of depository institutions.

Accepted Answer

False

Question 18

Which of the following are run by their members?

Accepted Answer

None of the above

Question 19

A debit card

Accepted Answer

All of the above

Question 20

Banks determine if they'll lend you money based on how well they think you'll repay the loan.

Accepted Answer

True

Question 21

Which of the following is NOT a characteristic of a Commercial Bank?

Accepted Answer

Owned by the depositors

Question 22

FDIC stands for

Accepted Answer

Federal Deposit Insurance Corporation

Question 23

Which of the following operate on a non-profit basis?

Accepted Answer

Credit Union

Question 24

Only credit unions offer account without fees, because they are non-profit.

Accepted Answer

False

Question 25

The FDIC and NCUA insure accounts up to $25,000

Accepted Answer

False

Question 26

the FDIC insures Savings Banks, savings and Loan Associations as well as commercial banks.

Accepted Answer

True

Question 27

NCUA stands for

Accepted Answer

National Credit Union Association

Question 28

Traveler's Checks, certified checks and money orders are examples of

Accepted Answer

types of special needs payments you may need to use

Question 29

A benefit of a checking account is that it reduces the need to carry cash.

Accepted Answer

True

Question 30

No checking accounts earn interest.

Accepted Answer

False

Intro to Depository Institutions

Questions 30

Intro to Depository Institutions

Questions 30