ch 2 Flashcards
(129 cards)
1
Q
savings and loan associations began as a source of funds to buy homes
A
true
2
Q
when an early bank made a loan, the borrower received gold
A
false
3
Q
gold is an example of a specie
A
true
4
Q
thomas jefferson proposed the first bank of the US
A
false
5
Q
credit unions began as non profit cooperatives
A
true
6
Q
the free banking period began after the civil war
A
True
7
Q
wildcat banks were examples of very poor banking practices
A
true
8
Q
today most credit unions are owned by commercial banks
A
false
9
Q
historically, banks could issue their own currency
A
true
10
Q
mutual savings banks were begun for the benefit of the poor
A
true
11
Q
the federal reserve system began with the banking act of 1864
A
false
12
Q
the savings and loan crisis took place in the early 20th century
A
false
13
Q
the federal reserve system includes 12 reserve banks
A
true
14
Q
mutual savings banks were founded mainly in the far west
A
false
15
Q
the federal reserve bank issues our currency
A
true
16
Q
at one time, the US had more than 9,000 bank notes circulating
A
true
17
Q
the federal reserve bank regulates credit in the US
A
true
18
Q
offers checking accounts to consumers
A
commercial banks, credit unions, savings and loan assoc.
19
Q
offers loans to consumers
A
commercial banks, credit unions, savings and loan assoc.
20
Q
offers savings accounts to consumers
A
commercial banks, credit unions, savings and loan assoc.
21
Q
offers credit cards to consumers
A
commercial banks, credit unions, savings and loan assoc.
22
Q
offers home mortgages
A
commercial banks, credit unions, savings and loan assoc., mortgage companies
23
Q
offers gov. savings bonds
A
commercial banks, credit union, savings and loan assoc.
24
Q
clears and collects checks
A
federal reserve banks
25
also known as small loan companies
savings and loan assoc.
26
non-depository institutions
finance companies, mortgage companies, investment companies, federal reserve bank
27
regulates the availability of credit
federal reserve bank
28
offers investment services to consumers
commercial banks, credit union, savings and loan assoc., and investment companies
29
offers trust services to consumers
commercial banks, credit unions, savings and loan assoc.
30
offers loans to commercial businesses
commercial banks, savings and loan assoc., finance companies, mortgage companies
31
offers car loans to consumers
commercial banks, credit unions, savings and loan assoc., finance companies
32
holds the reserves of member banks
federal reserve banks
33
our currency is federal reserve notes
true
34
there are 7 denominations of our currency in circulation
true
35
george washington's portrait is printed on the $5 bill
false
36
there are currently six coin denominations in circulation
true
37
thomas jefferson's portrait is printed on the $20 bill
false
38
coins are called fractional currency
true
39
ben franklin's portrait is printed on the $100 bill
true
40
a dollar coin could picture susan b. anthony, sacajawea, or a president
true
41
our currency is issued by the 10 federal reserve banks
false
42
large portrait notes began replacing small portrait notes in 2000
false
43
franklin roosevelt is pictured on the dime
true
44
large portrait notes have a number of features to deter counterfeiting
true
45
abraham lincoln is pictured on the penny
true
46
large portrait notes have a security thread, a watermark, and microprinting
true
47
ulysses s. grant's portrait is printed on the $50 bill
true
48
alexander hamilton's portrait is on the $1 bill
false
49
thomas jefferson is pictured on the nickel
true
50
george washington's portrait is on the $10 bill
false
51
federal reserve notes are now printed in various colors
true
52
george washington has been replaced on the quarter with designs emblematic of the 50 states
false
53
checking accounts are demand deposits
true
54
only banks can offer checking accounts
false
55
to open a checking account, you must sign a signature card
true
56
all checking accounts pay interest on the account balance
false
57
the amt is written twice on a check in words and numbers
true
58
a debit card transaction is a subtraction from a checking account balance
true
59
a blank endorsement allows a check to be cashed by anyone
true
60
a check includes a transit number, routing symbol, and account number
true
61
a debit would be an addition to a checking account balance
false
62
a full endorsement means a check can only be deposited in our account
false
63
a payment would be a subtraction from a checking account balance
true
64
every check that is cleared goes through a federal reserve bank
false
65
an e-check is a way to make checking account purchases on the internet
false
66
all withdrawals are made from a checking account by writing a check
false
67
all checking account transactions should be entered in the check register
true
68
a checking account statement lists only check transactions
false
69
a register is a listing of your checking account transactions
true
70
your signature on the back of a check is a restrictive endorsement
false
71
a monthly account statement will list all checks written during that month
false
72
you should reconcile your register against your account statement
true
73
the check 21 act is designed to eliminate all paper checks by 2020
false
74
you will earn interest
statement savings, money market savings, certificates of deposit, savings bonds
75
a loan to the federal gov.
savings bonds
76
your money is safe
statement savings, money market savings, certificates of deposit, savings bonds
77
you can buy them at a discount
savings bonds
78
requires a large deposit than a statement savings account
money market savings, certificates of deposit
79
pays compound interest
statement savings, money market savings, certificates of deposit, savings bonds
80
interest is exempt from state income tax
savings bond
81
a penalty is paid for early withdrawal
certificates of deposit, savings bonds
82
this type of saving involves a risk of loss
under the mattress
83
your monthly withdrawals will be limited
money market savings
84
a good choice for an emergency fund
statement savings
85
good choices for long term savings
money market savings, certificates of deposit, savings bonds
86
includes EE and I
savings bond
87
offers the highest liquidity
certificates of deposit
88
offered by all financial institutions
statement savings, money market savings, certificates of deposit, savings bonds
89
a contract specifies the terms of a loan
true
90
finance companies are an inexpensive source of loans
false
91
add-on interest is the most common way loan interest is calculated
false
92
all loans require that the money be used in a specific way
false
93
the cost of credit is interest
true
94
loans are a major source of income to financial institutions
true
95
credit unions sell credit info to financial institutions
false
96
a loan contract must disclose the annual percentage rage being charged
true
97
amortized loans charge simple interest
true
98
your ability to get a loan will depend on your credit score
true
99
your ability to get a loan will depend on your ability to repay it
true
100
savings a loans can only lend money for home mortgages
false
101
a loan contract must disclose the total of payments
true
102
the first step in the loan process is usually completing an application
true
103
credit is a privilege and not a right
true
104
if you have a job, you can always qualify for a loan
false
105
the fair credit reporting act requires that a loan contract disclose the financial terms of the loan
false
106
add-on interest is cheaper than interest on the unpaid balance
false
107
credit card loans are amortized loans
false
108
a loan contract must disclose the total finance charge
true
109
these would be used to send money through the mail
cashier's check, certified check, money order
110
you can use this to get cash at many locations
automated teller machine
111
you might use these services when planning a trip abroad
currency exchange, travelers checks, insurance
112
these services could be used to manage your assets
trust services, investments, insurance
113
a banks check
cashiers check
114
$1.40 US for 1 Euro
currency exchange
115
your check guaranteed
certified check
116
accepted everywhere for payment
cashier's check, certified check, money order, traveler's check
117
involves the risk of losing your money
investments
118
a secure place for valuables
safe deposit box
119
online banking is available 24/7
true
120
with online banking, funds can be transferred between accounts
true
121
all banks are required to have a brick and mortar location
false
122
you can make cash withdrawals online
false
123
one disadvantage of online banking is not being able to take face-to-face with your banker
true
124
access to your online accounts requires a user ID and password
true
125
you can make loan payments online
true
126
you can pay bills online
true
127
online bill payment is instantaneous so you can wait until the last minute
false
128
an e-bill is the charge you must pay your bank for online banking
false
129
the first financial institutions in america were commercial banks
true
