Banking FAQs and Tips

1. Test Review Banking

2. 1 • List the guidelines for selecting a PIN number. • Don’t pick a number that anyone else could figure out.

3. 2 • A loan to buy real estate. • Mortgage

4. 3 • What does ATM stand for? • Automated Teller Machine

5. 4 • Checking account holders fill this out when they first open their account to help the bank avoid accepting forged checks. • Signature card

6. 5 • The type of endorsement where you just sign your name on the back of the check. • Blank

7. 6 • What amount of money is protected by FDIC insurance per depositor per account? • $100,000

8. 7 • Name for a savings account at a credit union. • Share account

9. 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.

10. 9 • Name the type of insurance that protects depositors at Savings & Loans. • SAIF

11. 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

12. 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.

13. 12 • Name the type of insurance that protects depositors at commercial banks. • FDIC

14. 13 • A type of investment where the investor lends money to a corporation. • Bond

15. 14 • How often are bank statements usually mailed to checking account customers? • Monthly

16. 15 • Name 1 advantage of having your money in a bank account. • Can’t lose it. • Can’t be stolen. • Interest.

17. 16 • What does PIN stand for? • Personal identification number

18. 17 • Name the type of insurance that protects depositors at credit unions. • NCUA

19. 18 • What term describes a transaction that has not appeared on your bank statement & has not cleared the bank? • Outstanding

20. 19 • When does the depositor need to sign their deposit slip? • When they are getting cash back.

21. 20 • A term for the person to whom the check is written. • payee

22. 21 • A type of investment that represents ownership in a corporation. • Stock

23. 22 • Name 2 services offered by brokerage firms. • Retirement accounts • Stocks • bonds

24. 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.

25. 24 • “Pay to the order of David Davidson, Sandy Sanderson” is an example of what type of endorsement? • special

26. 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.

27. 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)

28. 27 • “For deposit only Account # 123456789, Jane Doe” is an example of what type of endorsement? • Restrictive

29. 28 • When reconciling your checking account, you _______ outstanding deposits to the bank balance. • Add

30. 29 • Money earned on a deposit at a bank is referred to as _________. • Interest

31. 30 • The person to whom a check is written is the ___________. • Payee

32. 31 • A check that has been stamped to show it has been paid is said to be _________. • Canceled

33. 32 • A(n) _________ is a legal document that functions like cash. • Check

34. 33 • A monthly record of all activity within a bank account that is provided by the bank. • Bank statement

35. 34 • True or False: A person may claim 1 allowance on their W-4 if nobody else can claim them as a dependent. • True

36. 35 • True or False: You must complete a deposit slip to use your debit card. • False

37. 36 • True or False: South Dakota has a state income tax. • False

38. 37 • True or False: A checking account customer can write checks until they run out of checks. • False

39. 38 • True or False: The balance the bank says you have is always the correct balance. • False

40. 39 • True or False: Most people use safe-deposit boxes to store cash. • False

41. 40 • True or False: Credit unions are non-profit businesses. • True

42. 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

43. 42 • True or False: Most Americans have little need for bank accounts. • False

44. 43 • True or False: Direct deposit is when an employee’s paycheck is automatically put into their bank account on payday. • True

45. 44 • True or False: A bank customer can deposit money into their account by using an ATM. • True

46. 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.

47. Final Question • Compare and contrast the following types of financial institutions. • Savings & Loan • Commercial Bank • Credit Union • Brokerage Firm