Test Review

Banking

1• List the guidelines for selecting

a PIN number.

• Don’t pick a number that anyone else could figure out.

2• A loan to buy real estate.

• Mortgage

3• What does ATM stand for?

• Automated Teller Machine

4• Checking account holders fill

this out when they first open their account to help the bank avoid accepting forged checks.

• Signature card

5• The type of endorsement

where you just sign your name on the back of the check.

• Blank

6• What amount of money is

protected by FDIC insurance per depositor per account?

• $100,000

7• Name for a savings account at

a credit union.

• Share account

8• List an example of a service

provided by brokerage firms.

• Brokerage firms sell stocks, bonds, and other investment products. They also offer financial counseling.

9• Name the type of insurance

that protects depositors at Savings & Loans.

• SAIF

10• Explain the difference between

a credit card and a debit card.

• Credit card=high interest loan

• Debit card=a way to access the $ in your checking account

11• Why should a checking account

customer avoid endorsing their check before they bring it to the bank to deposit it?

• If you lose it, someone else could cash it.

12• Name the type of insurance

that protects depositors at commercial banks.

• FDIC

13• A type of investment where the

investor lends money to a corporation.

• Bond

14• How often are bank

statements usually mailed to checking account customers?

• Monthly

15• Name 1 advantage of having

your money in a bank account.

• Can’t lose it.

• Can’t be stolen.

• Interest.

16• What does PIN stand for?

• Personal identification number

17• Name the type of insurance

that protects depositors at credit unions.

• NCUA

18• What term describes a

transaction that has not appeared on your bank statement & has not cleared the bank?

• Outstanding

19• When does the depositor need

to sign their deposit slip?

• When they are getting cash back.

20• A term for the person to whom

the check is written.

• payee

21• A type of investment that

represents ownership in a corporation.

• Stock

22• Name 2 services offered by

brokerage firms.

• Retirement accounts

• Stocks

• bonds

23• List a benefit to internet banking.• Can access balance & account

activity at any time. • Allows customer to transfer

money from one account to another.

24• “Pay to the order of David

Davidson, Sandy Sanderson” is an example of what type of endorsement?

• special

25• What is the purpose of the

verification number on the back of the debit card?

• This number is used for online transactions to prove the person ordering products has the card in their possession.

26• With this type of savings

account, the depositor gets a better interest rate but must leave their money in the account for a stated length of time.

• Certificate of Deposit (CD)

27• “For deposit only Account #

123456789, Jane Doe” is an example of what type of endorsement?

• Restrictive

28• When reconciling your

checking account, you _______ outstanding deposits to the bank balance.

• Add

29• Money earned on a deposit at

a bank is referred to as _________.

• Interest

30• The person to whom a check is written is

the ___________.

• Payee

31• A check that has been

stamped to show it has been paid is said to be _________.

• Canceled

32• A(n) _________ is a legal

document that functions like cash.

• Check

33• A monthly record of all activity

within a bank account that is provided by the bank.

• Bank statement

34• True or False: A person may

claim 1 allowance on their W-4 if nobody else can claim them as a dependent.

• True

35• True or False: You must

complete a deposit slip to use your debit card.

• False

36• True or False: South Dakota

has a state income tax.

• False

37• True or False: A checking

account customer can write checks until they run out of checks.

• False

38• True or False: The balance

the bank says you have is always the correct balance.

• False

39• True or False: Most people

use safe-deposit boxes to store cash.

• False

40• True or False: Credit unions

are non-profit businesses.

• True

41• True or False: It is only

necessary to sign a deposit slip if you are receiving part of your deposit back in cash.

• True

42• True or False: Most

Americans have little need for bank accounts.

• False

43• True or False: Direct deposit

is when an employee’s paycheck is automatically put into their bank account on payday.

• True

44• True or False: A bank

customer can deposit money into their account by using an ATM.

• True

Final Question Directions

• Write down your bet. You must bet at least 1 point. You may bet up to the number of points your group has scored.

Final Question• Compare and contrast the

following types of financial institutions.

1.Savings & Loan2.Commercial Bank3.Credit Union4.Brokerage Firm