2.5 pf

Even though we should be careful with our money and valuables, what does the Bible say about the things of this world and wealth?

"Do not lay up for yourselves treasures on earth, where moth and rust destroy and where thieves break in and steal." -Matthew 6:19 "For where your treasure is, there your heart will be also." -Matthew 6:21 "But lay up for yourselves treasures in heaven, where neither moth nor rust destroys and where thieves do not break in and steal." -Matthew 6:20 "Jesus said to the rich young ruler, "You lack one thing: go, sell all that you have and give to the poor, and you will have treasure in heaven; and come, follow me."

The present limit for insuring any account at participating banks through the FDIC is ________________.

$250,000.00

Why are financial institutions safe places to keep your money?

They are regulated by federal guidelines and are in business to make money for their depositors, members, and/or stock holders.

Since being created in 1933, the FDIC has caused participants to lose how much money?

No depositor has ever lost a penny of insured deposits since the FDIC was created in 1933.

When you pay for your purchases at a store and you use a check, why do they sometimes give you your check back instead of keeping it?

The store used an EFT system to automatically withdraw the money from your account.

A direct withdrawal is an electronic transaction similar to direct deposit, except a direct deposit ________________________.

deposits money into your account while a direct withdrawal takes money out of your account

Electronic banking or electronic funds transfer can include which of the following? Choose all that apply.

direct deposit of your payroll to your bank account ATM withdrawals using your personal computer to transfer money from your checking account to your savings account phone-activated transfer from one account to another automatic insurance bill drafted off your account monthly electronic check conversion at a store for payment for merchandise

In the 1970's under the Carter administration, the United States was plagued with __________________.

high inflation and high unemployment

Choose all statements that describe a "bank."

invests in capital markets to make money for the institution as well as its customers regulated by the government charges fees and interest to pay administrators and stock holders accepts deposits to accounts a financial institution

Financial institutions do not offer their services for free. You may have a free checking account, and you may receive interest on the money you have in a savings account, CD, or money market account; however, the institution will charge you fees for a variety of reasons. Choose all charges discussed in the lesson that can be levied against an account owner.

monthly or annual account fees overdraft fee check-cashing fee when cashing a check from a different bank non-sufficient funds fee minimum balance fee ATM transaction fee membership fees at credit unions

You can use your debit card to make purchases _____________________. Choose all correct responses.

over the phone online in person at a store

If you are using your personal computer to carry out banking transactions, it is important that no one else knows your _____________.

passwords

What is the source of funding used by the FDIC to pay insured depositors of a failed bank?

premiums already paid by insured banks and interest earnings on its investment portfolio of U.S. Treasury securities

In a financial institution that is federally insured, deposited money is safe from ____________________.

theft, loss, and fire

Select the correct answer(s). God used the ant in Proverbs 6:5-8 to teach us:

to put aside extra money from each paycheck into a savings account to not be lazy to acquire wisdom

What is the FDIC?

The Federal Deposit Insurance Corporation is an independent federal agency created to promote public confidence and stability in the nation's banking system.

What event in American history had a profound effect on modern-day banking regulations and policy?

The Great Depression

Because banks are federally regulated, there are certain guidelines that they have to follow. What are some of these guidelines? Choose all that apply.

A bank has to abide by guidelines set up by the Federal Reserve System. A bank is regulated to make sure it does not lend more money than it can safely cover with assets and depositors' monies. A bank has to maintain a certain ratio of how much it lends compared to its capital assets. A bank is insured by the FDIC and must follow its guidelines in order for its depositors to be covered against loss. A bank has to have a minimum amount of capital holdings to do business

The Federal Reserve System was established in 1913 and was the [ Select ] ["third", "fourth", "first", "second"] attempt by the United States government to establish a central banking system. Unlike its two predecessors, the Federal Reserve System was not limited to a [ Select ] ["30-year charter", "20-year charter", "10-year charter", "50-year charter"] by the passing of the McFadden Act of 1927. The Banking Act of 1933 established the [ Select ] ["The United States Mint", "The Federal Reserve System", "The Securities and Exchange Commission", "Federal Deposit Insurance Corporation"] to protect the deposits of consumers against bank failure. [ Select ] ["Online banks", "All", "Some", "No"] financial institutions are members of the Federal Reserve System today.

Answer 1:1913 Answer 2:third Answer 3:20-year charter Answer 4:Federal Deposit Insurance Corporation Answer 5:Some

Alexander Hamilton was the first Secretary of [ Select ] ["State", "Defense", "the Treasury", "Housing and Urban Development"] . He believed in a strong federal government with a centralized [ Select ] ["legislature", "air conditioning system for the White House", "banking system", "police force"] . Hamilton's critics attacked him by stating that a central government-run bank would be [ Select ] ["a monopoly and unconstitutional", "un-American and tyrannical", "progressive and liberal", "inflationary and radical"] . The first Bank of the United States was a [ Select ] ["public", "exclusive", "government", "private"] institution and was owned by a majority (70%) of [ Select ] ["political", "democratic", "foreign", "government"] investors.

Answer 1:the Treasury Answer 2:banking system Answer 3:a monopoly and unconstitutional Answer 4:private Answer 5:foreign

What four responsibilities does the Federal Reserve System have that were also the responsibilities of its predecessors, the First and Second Bank of the United States? Choose all correct answers.

Holds deposits for the federal government. Receives revenues for the federal government. Acts as the federal government's fiscal agent. Makes payments for the federal government.

There are several reasons why people should use a financial institution to help them with managing their money. Choose all valid reasons to have an account with a financial institution.

It provides a safe place for your money. It helps with establishing credit and getting loans. You are insured against losses up to the federal maximum amount. It allows quick access to your money. It is cheaper than other possible alternatives.

Most ATMs that accept debit cards for transactions also require you to enter your PIN as well. What is a PIN?

Personal Identification Number

A debit card purchase is much like a credit card purchase except _____________________________.

a debit card purchase transfers money directly from your checking or savings account

Choose all statements that describe a "credit union."

accepts deposits to accounts like a bank not for profit a financial institution member-owned profits and surpluses go to pay administrators and provide services for members provides services only to its members

Choose all statements that describe a "thrift."

also known as a savings and loan association limited by law as to the amount of assets it can use for commercial loans a mutually held corporation with decisions made by depositors and borrowers a financial institution specializes in making money off of mortgages and personal loans to its members

What are the three main types of financial institutions available to help you manage your finances?

banks, credit unions, and thrifts

Online financial institutions offer all services that "brick and mortar" institutions offer, EXCEPT these:

branch manager offices to sit down and discuss your account in a teller working at a walk-up office

The FDIC insures different kinds of accounts at participating financial institutions. Choose all of the accounts or investing programs that are covered by the FDIC. (Check the FDIC website https://www.fdic.gov/edie/Links to an external site. if you need help.)

checking accounts statement savings accounts passbook savings accounts certificate of deposits (CDs) Money Market Deposit Accounts

People enjoy using online banking because it is ____________________.

convenient and saves time