Banking test

Banking test What are the three main responsibilities of the Federal Reserve? - CORRRECT ANSWERS1. Provide and Maintain an effective payment system 2. Supervise and regulate banking operations 3. Conduct monetary policy Which type of financial institution typically has some sort of requirement to be a member? - CORRRECT ANSWERSCredit Union Which type of bank account is typically the most liquid? - CORRRECT ANSWERSChecking Account Compare/ contrast a checking account and savings account. Which offers more interest? Which is easier to get money out of? - CORRRECT ANSWERSSavings account offers more interest. Checking accounts are more easier to get your money out of. Between checking, savings, money market, and certificate of deposit, which typically has the highest interest rate? Which has the lowest liquidity? - CORRRECT ANSWERSCertificate of Deposit (CD) What are the three parts of the Federal Reserve System? - CORRRECT ANSWERS1.Reserve Banks 2.Federal Open Market Committee 3.Board of Governors. List four possible fees associate with a checking account. Which is likely to be the highest - CORRRECT ANSWERSOverdraft fee, Account transfer fee, Monthly service fee, ATM fee. ATM fee is highest. What are some unique features of a credit union? - CORRRECT ANSWERS1.Credit Unions are typically owned and run by their members. 2.Credit Unions offer a wide variety of banking services What three things do the numbers on the bottom of a typical check represent? - CORRRECT ANSWERS1. Routing Number 2. Account Number 3. Check Number Which part of the check is the least important? - CORRRECT ANSWERSMemo line How often should you typically monitor your checking account? - CORRRECT ANSWERSMonthly What is a payday lender? Why should you avoid them? - CORRRECT ANSWERSThey're not a type of bank, but a type of loan. They're very xpenisce and your debt will grow fast. How do you avoid paying ATM fees? - CORRRECT ANSWERSOnly use ATM's in your banks network What is the purpose of of balancing or monitoring your checking account? - CORRRECT ANSWERSHelps you calculate how much money you have in your account. What is the best way to ensure the accuracy and safety of your accounts? - CORRRECT ANSWERSMonitor your accounts regularly. With a traditional savings account, there might be a fee for withdrawing money ______ _________. - CORRRECT ANSWERStoo; often Retail Bank - CORRRECT ANSWERSoffers services like savings and checking accounts, mortgages, personal loans, and credit cards. Credit Union - CORRRECT ANSWERSare not-for-profit cooperative banks that are privately owned and controlled by their members. credit union - CORRRECT ANSWERSto join a ____________ ___________ you have to become a member. Online Banks - CORRRECT ANSWERSYou can access services like savings and checking accounts and debit and credit card, but you won't find a physical location near you. payday lenders and check cashers - CORRRECT ANSWERSthese are not banks; comes with high rates and fees payday loans - CORRRECT ANSWERSallows you to receive a loan in a form of cash before your payday. check cashing services - CORRRECT ANSWERScash your paychecks for a fee. Credit Union - CORRRECT ANSWERSMembership may be exclusive to certain people or groups, like members of the military or people who work in a specific industry. Retail Bank and Credit Union - CORRRECT ANSWERSAbility to meet with a bank