UNIT 8: FINANCIAL LITERACY QUIZ AND
ANSWERS.
Commercial Bank - Answers-a bank that offers services to the general public and to
companies
Savings & Loan Association - Answers-a financial institution that specializes in
accepting savings deposits and making mortgage and other loans
Mutual Savings Bank - Answers-a financial institution chartered by a central or regional
government, without capital stock, that is owned by its members who subscribe to a
common fund.
Credit Unions - Answers-a nonprofit-making money cooperative whose members can
borrow from pooled deposits at low interest rates
Finance Companies - Answers-a company concerned primarily with providing money,
as for short-term loans
M1 - Answers-represents money that people can gain access to easily and immediately
to pay for goods and services
M2 - Answers-Consists of all t he assets in M1 plus several additional assets. These
additional M2 funds cannot be used as cash directly, but can be converted to cash fairly
easily. M2 assets are also called near money
Liquidity - Answers-the ability to be used as, o directly converted to, cash
Mutual Funds - Answers-a fund that pools money from small savers to purchase short-
term government and corporate securities
FDIC - Answers-an independent agency of the United States (U.S.) federal government
that preserves public confidence in the banking system by insuring deposits; Federal
Deposit Insurance Corporation
Money Market Accounts - Answers-a non-financial account that pays interest based on
current interest rates in the money markets
Certificate of Deposit (CD) - Answers-a savings certificate entitling the bearer to receive
interest
Loans - Answers-a thing that is borrowed, especially a sum of money that is expected to
be paid back with interest
ANSWERS.
Commercial Bank - Answers-a bank that offers services to the general public and to
companies
Savings & Loan Association - Answers-a financial institution that specializes in
accepting savings deposits and making mortgage and other loans
Mutual Savings Bank - Answers-a financial institution chartered by a central or regional
government, without capital stock, that is owned by its members who subscribe to a
common fund.
Credit Unions - Answers-a nonprofit-making money cooperative whose members can
borrow from pooled deposits at low interest rates
Finance Companies - Answers-a company concerned primarily with providing money,
as for short-term loans
M1 - Answers-represents money that people can gain access to easily and immediately
to pay for goods and services
M2 - Answers-Consists of all t he assets in M1 plus several additional assets. These
additional M2 funds cannot be used as cash directly, but can be converted to cash fairly
easily. M2 assets are also called near money
Liquidity - Answers-the ability to be used as, o directly converted to, cash
Mutual Funds - Answers-a fund that pools money from small savers to purchase short-
term government and corporate securities
FDIC - Answers-an independent agency of the United States (U.S.) federal government
that preserves public confidence in the banking system by insuring deposits; Federal
Deposit Insurance Corporation
Money Market Accounts - Answers-a non-financial account that pays interest based on
current interest rates in the money markets
Certificate of Deposit (CD) - Answers-a savings certificate entitling the bearer to receive
interest
Loans - Answers-a thing that is borrowed, especially a sum of money that is expected to
be paid back with interest
