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 # , 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 & Loan 2.Commercial Bank 3.Credit Union 4.Brokerage Firm