What Do You Know About Depository Institutions 2.2 PDF

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General course work from class completed last year....

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Page | 29 2.2.1.A5

What Do You Know About Depository Institutions? Total Points Earned Name 29

Total Points Possible Date Percentage Class

Directions: Choose whether each statement describes a credit union, commercial bank, or both by placing the corresponding letter in the blank. (1 point each) __b___ 1. ___c__ 2. ___a__ 3. __b___ 4. ___a__ 5.

Anyone can open an account here Offers financial services Owned by their customers In business to make money Membership requirements to open an account

A. Credit Union B. Commercial Bank C. Both

Directions: Answer the following questions with complete sentences. 6. What are two benefits depository institutions can provide? (2 points) They can provide you with a debit card which allows you to pay at places without having to carry cash. They also allow you to use atm’s to access you cash and keep track of your cash online or on your phone.

7. What would be the three most important factors that you would consider when deciding which depository institution fits your needs? Explain. (3 points) You must look at convince of location. If you travel to certain areas such as me being in Michigan commonly and I have to open a second account at Huntington bank. You must need to look at fees and decide whether they are reasonable such as security and account fees. Lastly, you need to research how safe a bank is and how much there interest they give you is.

8. What are two ways depository institutions keep your money safe? (2 points) They require a pin if you are using a card, login in on mobile and online, or your personal checks. They also have insurance which kicks in for robberies or other issues that may occur.

© Take Charge Today – August 2013 – Introduction to Depository Institutions Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

9. What is the difference between a checking account and a savings account? (2 points) A checking account is easy to access through debit cards or checks and has no or little interest. While a saving account is hard to move money from but receives interest.

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10. What is one example of a special needs payment instrument? (1 point) A certified check is an example of this which can be used to make large purchases.

11. Describe the difference between online banking and mobile banking. (2 points) Mobile banking is an app which can be easily used to make purchases and transfer money. While online banking is a website which offers similar features and is more secure.

12. What are three activities that may be completed with online banking? (3 points) You may transfer money between bank accounts. You many transfer money to others. Also you may pay bills easily online.

13. What are two activities that may be completed with an ATM? (2 points) You may withdrawal cash and deposit cash into atms.

© Take Charge Today – August 2013 – Introduction to Depository Institutions Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

Directions: Circle whether each of the following statements are true or false. (1 point each) T

F

14. A debit card can be described as an electronic check that requires a PIN.

T

F

15. All depository institutions offer ATM’s in many different locations.

T F 16. If a merchant accepts debit cards, that place of business will also offer contactless payment as an option. T

F

17. An overdraft fee may be charged if you exceed your checking account balance when using your debit card.

T

F

18. All depository institutions are required by law to charge the same fees.

T

F

19. One person can open accounts at more than one depository institution.

T

F

20. A person can earn and be charged interest....