Banking- Module 2, everfi banking

What offers saving & checking accts, mortgages, personal loans, and debt & credit cards?

Retail banks

3 parts of the Federal Reserve System

1. Reserve banks 2. Open Market Committee (FOMC) 3. Board of Governors

Federal Open Market Committee (FOMC)

Decide nation’s policy about the $ supply, & interest rates charged two banks

Reserve Banks (12 Regional)

Collect data and research, & provide ntl services to the region and gov

Board of Governors

Support 12 regional reserve banks & make decisions for monetary policy

Federal Reserve banks

Keep prices stable & more flexible, print money, control amount of available money

What’s of the following is NOT one of the responsibilities of the Fed. Reserve?
A. Supervising the reserve banks
B. Maintaining a stable banking system
C. Setting nations monetary policy
D. Establishing the fed. budget

D. Establishing the fed. budget

How to avoid account fees: (2)

Keep track of acct fees (ex. ATM fees- for using ATM outside banks network) or service feels (ex. charges for using certain accts)

With a trad. savings acct, you could be charged a fee if:
A. You open an acct online
B. You withdraw $ too often
C. You close the acct.
d. You deposit too much $ at once

B. You with draw $ too often

Which of the following about FDIC-insured accts is correct?
A. FDIC insures deposits up to $250,000 /person /bank
B. Al cred. unions & retail banks provide FDIC-insured accts
C. Both A & B
D. None of the above

A. FDIC-insured accts are protected up to $250,000 per person per bank

For a check, what is the check number and where is it located?

Top right corner; keeps track of and identifies checks you write

For a check, what’s the routing # and where’s it located?

Bottom left corner, left set of #s; Indicated which financial institution issues the check (might need for direct deposits and debits)

For a check, what is the account # and where’s it located?

Bottom left, right set of #s; Tells the bank which account the $ is coming from (might need for direct deposits and debits)

What is the one place on a check that can be left blank?

Memo line

If you need to set up a direct deposit, which info from your check would you likely need?
A. Check #
B. Memo line
C. Numerical amount
D. Routing #

D. Only the routing # provides the info needed

The best way to ensure the accuracy and safety of your accounts is to:

Monitor your online accounts regularly

Monitor your online accounts regularly

all of the above

Which of the following is NOT one of the responsibilities of the Federal Reserve?

est federal budget

What’s the best strategy for avoiding ATM fees?

Only use those in network

Which of the following fees would likely be the highest?

overdraft fee

What’s the purpose of balancing or monitoring your checking account?

To help you calculate how much money you have in your account

Savings accounts usually offer _________ interest rates than checking accounts. It is _________ to access your money in a savings account than in a checking account.

higher, harder

The numbers on the bottom of a typical check represent all of the following EXCEPT?

SSN

Which type of account is typically the MOST liquid?

checking

How often should you typically monitor your checking account?

monthly