True/False
Indicate whether the
statement is true or false.
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1.
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Banks are partially regulated by the FDIC, which protects the depositors money
in case a bank or financial institution that it regulates fails.
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2.
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If an individual has $100,000 or more, they can open a personal account at a
Federal Reserve (FED) Bank.
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3.
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Simple interest is interest computed on the amount saved (or deposited) plus the
interest previously earned.
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4.
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In financial terms, the acronym ‘CD’ stands for ‘Certificate
of Deposit’ and is a special type of savings account.
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5.
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Money put into a checking account is called a demand deposit.
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6.
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Regular checking accounts normally do NOT pay interest like savings accounts
do.
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7.
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Banks in different cities use the FED for clearing checks; money is drawn from
the Interdistrict Settlement Fund.
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8.
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Holders of Roth IRAs pay taxes on their earnings when they withdraw the
money.
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9.
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You must start withdrawing money from your IRA by age 70-1/2.
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10.
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Money Market Accounts are insured by the FDIC (or NCUA if at a Credit Union),
but Money Market Funds are not.
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11.
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Series HH bonds are not longer issued.
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Multiple Choice
Identify the
choice that best completes the statement or answers the question.
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12.
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By strict definition, which of the following is NOT considered a
‘bank’?
a. | Credit Union | c. | Trust Company | b. | Commercial Bank | d. | Savings Bank |
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13.
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Which is NOT a common way interest is calculated by banks when dealing with
customers funds?
a. | daily | b. | weekly | c. | monthly | d. | quarterly |
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14.
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If you wanted to withdraw money from your savings account but didn’t want
it cash, you would normally ask for what type of Bank Guaranteed Check?
a. | Bank Draft | b. | Cashier’s Check | c. | Certified
Check |
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15.
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Which of the following is not a type of annuity discussed in class?
a. | Fixed-income | b. | Variable-income | c. | Combined-income |
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16.
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Which is NOT a type of U.S. Savings Bond discussed in class?
a. | Series I | b. | Series HH | c. | Series EE | d. | Series
K |
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Numeric Response
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17.
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U.S. Treasury Bills are sold in as 4-week, 13-week, 26-week and ____-week
investments.
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18.
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U.S. Treasury Bills are sold in $_______ increments. (there is no comma in the
answer)
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19.
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If the bank where you keep your money is a member of the FDIC, your money is
protected up to how much? (in your answer, do NOT use commas or dollar signs; just numbers)
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20.
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You can change from one IRA investment to another without penalty if the money
is not withdrawn for more than _____ days.
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21.
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Bonds are generally bought and sold in increments of $_______. (no commas in the
answer)
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Completion
Complete each
statement.
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22.
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Ohio is in Federal Reserve District Four, with our FED Bank located in what
city? (spelling counts)
___________________
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23.
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Financial institutions other than banks are collectively known as _______.
(spelling counts)
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24.
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What does the acronym ‘PIN’ stand for?
_________________ ______________ _________________
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25.
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There are three ways you can own U.S. Savings Bonds. The form of ownership in
which one person owns the bond and another person is registered to receive ownership of the bond when
the original owner dies is known as what type of ownership? (spelling counts; one word answer)
____________________
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26.
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The only way you can purchase a paper Series _____ U.S. Savings Bond is to do so
with your Federal Tax Return.
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Matching
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Match the following terms to their definitions. a. | yield | g. | overdrawing | b. | deposit | h. | outstanding check | c. | check | i. | withdrawal slip | d. | drawee | j. | cleared check | e. | endorsement | k. | payee | f. | drawer |
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27.
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a depositor’s written demand to a bank to pay out money from his or her
account
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28.
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writing a check for more money than you have in your account
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29.
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financial institution where the account for the check is held
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30.
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percent of interest that will be added to your savings over a period of
time
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31.
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the person or company to whom the check is written
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32.
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money put into a particular account in a bank or other financial
institution
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33.
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owner of the account and the person who signs the check on the front
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34.
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a written request to take money out of your account
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Match the following financial institutions to their respective
definitions: a. | Savings and Loan | e. | Commercial Bank | b. | Savings
Bank | f. | FED
Bank | c. | Federal Bank | g. | Trust Company | d. | Credit Union | h. | Consumer Finance
Company |
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35.
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generally deal in or with checking and savings accounts, real estate, trust
funds, all types of loans and investments
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36.
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mainly organized to deal with savings accounts and make loans to home
buyers
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37.
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banks that specialize in the managing people’s money and property for
them
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38.
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specialize in savings accounts and making loans for mortgages
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39.
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a type of bank that is formed by workers in the same firm, government agency,
labor union, or other agency
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40.
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specialize in making loans for durable goods, such as cars, refrigerators, etc.
and for financial emergencies; do not accept savings as do banks and other financial
institutions
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