Banking

Question 1

Institutions that give loans

Answer 1

Banks, credit unions, pawnshops, finance companies, payday lenders, tax preparers

Question 2

Which institution(s) charge the highest interest rates on loans?

Answer 2

Pawnshops, payday lenders, tax preparers, finance companies

Question 3

What is a credit union?

Answer 3

What is a credit union and the advantage of using a credit union?

Question 4

Federal Deposit Insurance Corporation (FDIC)

Answer 4

Organization created by the Federal Government that insures deposits up to a maximum that was
increased to $250,000 in 2008

Question 5

What are the two forms of money?

Answer 5

Currency and Checks

Question 6

bank account that allows depositors to write checks to make payments

Answer 6

Checking account

Question 7

A personal check that has been stamped and signed by a bank officer

Answer 7

Certified check

Question 8

A bank’s own check signed by the bank’s cashier

Answer 8

Cashier’s check:

Question 9

A check that draws on the money of the bank or other financial business that issued it

Answer 9

Money order

Question 10

Checks that you pay for in advance; allows you to safely carry money into foreign
countries

Answer 10

Traveler’s Check

Question 11

The idea that money available at the present time is worth more than the same amount in
the future

Answer 11

Time value of money