QUIZ: Financial Lit Unit 4

B (False)

Accounts in non-depository institutions are almost always insured by the government. A. True B. False

A (False)

All financial institutions are equally safe and beneficial to use. A. False B. True

B (False)

All financial institutions offer the same products and services to consumers. A. True B. False

C (Brokerage firm)

An example of a nondepository financial institution is which of the following? A. All of the above B. Credit union C. Brokerage firm D. Commercial bank

B (Fees or commissions on sales or transfers)

Brokerage firms make their profits primarily in which of the following ways? A. Dividends B. Fees or commissions on sales or transfers C. Consumer deposits D. Government deposits

B (True)

Check cashing businesses do not require that an individual be an account holder; they will cash any valid check. A. False B. True

A (Customer deposits)

Commercial banks are funded through which of the following? A. Customer deposits B. Stock holders C. Government funding D. Services

B (False)

In the United States, all financial institutions are required to conduct business at a physical location only. A. True B. False

C (Investment)

Mutual fund companies are what type of companies? A. Insurance B. Mortgage C. Investment D. Credit card

B (Members of the institution)

Mutual savings institutions are owned by who? A. Government B. Members of the institution C. Stock holders D. All of the above

A (Loans on possessions)

Pawnshops generally offer what type of service? A. Loans on possessions B. Check cashing C. Life insurance D. High interest savings accounts

D ($250,000)

The FDIC in the United States insures some financial accounts up to what amount? A. $10,000 B. $50,000 C. $500,000 D. $250,000

A (True)

The Federal Deposit Insurance Corporation (FDIC) is an insurance agency that is supported by the government in the United States. A. True B. False

B (False)

The government provides no oversight of financial institutions in most countries. A. True B. False

A (Physical Locations)

Web-only financial institutions do not have which of the following? A. Physical locations B. Savings accounts C. Checking accounts D. Interest

C (Maturity Date)

What is the end of the CD account time when the money can be withdrawn? A. Completion date B. Withdrawal date C. Maturity date D. End date

B (The money has to remain in the account for a specified period of time)

What is true about certificates of deposit? A. All of the above are true. B. The money has to remain in the account for a specified period of time. C. They offer lower interest rates than savings account. D. They are the most liquid account available.

A (Retirement)

401k accounts are what type of accounts? A. Retirement B. Bond C. Mortgage D. Education

D (They are generally member owned)

What is true about credit unions? A. All of the above are true. B. They only offer savings accounts. C. They are not insured by the government. D. They are generally member owned.

B (A government employee)

Who would be eligible for a 403b account? A. A CEO of a Fortune 500 company B. A government employee C. Anyone D. A salesperson