Unit 3 Test - Banks and Other Financial Institutions
This test covers information for Personal Financial Literacy Unit 3
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1. Colton has just started a part-time job but he doesn’t see any reason why he should use a financial institution. What are some reasons for Colton to use a financial institution?

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2. Which is an example of a depository institution?

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3. Darla has chosen a financial institution because it is affiliated with his employer. What type of financial institution does Darla use?
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4. The Federal Deposit Insurance Corporation (FDIC) insures account holder’s accounts for up to _____.

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5. Rena has started working part-time and wants to save money for a car. Rena only has a small amount to open the account and wants to be able to access the money. What type of savings account would be best for Rena?
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6. Which savings institution has the benefit of the accounts being “share” accounts and interest rates may be higher?
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7. Caitlin is about to begin college and goes to the bank to check on a savings account her grandparents opened for her when she was a baby. They put $500 in the account and did not add any additional money. Caitlin is shocked when she learns the account now has thousands of dollars! What is the most likely explanation for the growth in Caitlin’s account?
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8. The earnings on savings are measured by the rate or return, called the ______.
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9. Blake has $3,000 in a savings account that earns 6% interest. How long will it take Blake to double his money assuming he earns compound interest and makes no withdrawals?
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10. Jeremy keeps most of his money in a savings account for after high school. He does have a few, but not many, bills to pay. What type of account might be best for his needs? 
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11. For-profit institutions owned by shareholders who receive the profits; provide a wide range of services and products.
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12. Have no physical location for consumers; everything is done online.
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13. A cooperative not-for-profit financial institution owned by its members.

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14. Deposits that consumers put in a financial institution are used to make loans to individuals and businesses.
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15. All financial institutions are the same, so consumers don’t need to consider other factors when making the decision of what financial institution to use.
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16. Factors to consider in deciding upon a financial institution include convenient access, availability of ATMs, and financial services offered.
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17. Liquidity refers to the ability of money to be quickly converted to cash.
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18. A debit card works more like a credit card than a check.
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