Finding Financial Services

Review

A financial institution that provides compensation in case of

a disaster or accident

Insurance Company

What should your parents do to save for your college education?

Open a savings account

What is the primary reason for the expansion of financial services?

Changes in technology that make more services available

What is a checking account feature that provides an automatic loan when you spend more than

you have in your account?

Overdraft Protection

What do credit cards charge?

Interest

How do debit cards work?

Debit cards directly deduct funds from your account

True/FalseOnline banking provides immediate access to

your funds anytime, day or night

False

True/FalseOnline banking automatically transfers funds

instead of writing checks.

True

True/FalseOnline banking can deposit checks automatically into your account.

True

True/FalseOnline banking allows you to pay bills anytime,

day or night.

True

Why do financial service providers charge fees?

To cover the cost of providing services to their customers

True/FalseThe best way to build a relationship with a

banker is to buy stocks and bonds from him/her.

False

True/FalseThe best way to build a relationship with a banker

is to open a checking account at his/her bank.

True

Who are banks chartered by?

Both state and federal governments

True/FalseIf you only have a small amount of money to save, you

probably want to buy stocks that are guaranteed to increase your earnings.

False

True/FalseIf you only have a small amount of money to save, you

probably want to open a savings accounts at your local bank or credit union.

True

True/FalseThe best way to protect your coin collection is

to get a safety deposit box at your bank.

True

True/FalseThe best way to protect your coin collection is to buy an

insurance policy.

False

Who is a person who assists others in buying investments such as stocks and bonds?

Stock Broker

Where can you get cash on the weekend?

ATM

Where does the cash come from when you are using the ATM?

Your Checking Account

What allows you to move money from your savings account when your checking account is

too low to cover your paymen?

Overdraft Protection

True/FalseA bank specializes in home loans.

False

What company specializes in home loans?

Mortgage Company

True/FalseOne of the costs associated with using a debit card is that you are charged interest on your purchases.

False

True/FalseOne of the costs associated with using a debit card is that

you can overspend by borrowing too much money.

False

One of the cost associated with using a debit card is that your spending is limited by the

amount of interest you earn on your account.

False

One of the costs associated with using a debit card is that your spending is limited to the

amount of money in your account.

True

True/FalseThe primary purpose of a savings account is to

assist with financial transactions.

False

True/FalseThe primary purpose of a checking account is

to allow you to buy now and pay later.

False

True/FalseThe primary purpose of a checking account is

to assist with financial transactions.

True

A career focused on buying newly created stocks in the primary market

Investment banker