Ariel is saving money to purchase a new computer before she leaves for college in two years. She wants to open a special account at a depository institution to keep her saved money safe. She has asked you for advice on which type of account would be best for her. What would be the best advice for Ariel?

Shop around for the depository institution with the highest interest rates for their savings accounts. She would be able to make regular savings deposits and earn interest while she is saving up for the computer.

Check several depository institutions and choose one with a free, no-interest checking account. That way, when Ariel has saved enough for her computer she can simply write a check to pay for it.

Look for a Credit Union that offers share draft accounts. These secure accounts are designed especially for saving for long-term financial goals.

Shop around for a depository institution that offers safe deposit boxes. These accounts offer extra security for deposits and can be set up to allow her to withdraw her money when she needs it.

Since Taylor was a young child she has kept her savings in a piggy bank. She likes this method of saving because she can have immediate access to the money if she needs it. Recently, in a class at school, discussion focused on why depository institutions are safer than her piggy bank. Some students’ comments were based on fact while others were based on myths. Which aspect of security at a depository institution is NOT TRUE?

Depository institutions have insurance protection. Depositors can have multiple accounts insured at the same depository institution as long as each account has no more than 100000.

Information about depositors and their accounts is kept in secure data storage.

Depository institutions have insurance protection for up to $250,000 per depositor per account type so if something happened to the money in the bank, you would get it back as long as the deposited amount was no more than the insurance limit.

All money stored at a depository institution is kept safe at all times by numerous security measures.

Samantha wants to be able to use funds in her checking account but finds going to the bank to withdraw cash to be inconvenient. She would like a more effective way to access her checking account funds. What would you suggest she do?

Apply for a debit card. That way she can use the card instead of cash to purchase the things she needs and the amount spent is immediately deducted from her account.

Request a cashier’s check from her depository institution. That way she can spend money from her checking account without risk of an overdraft fee.

Apply for mobile banking. That way she can access her money with her smartphone to pay for the things she needs. The amount she spends would automatically be deducted from her savings account.

Apply for a credit card. That way she can use the card to purchase the things she needs and pay for it when the credit card statement comes from her checking account.

Sanjay is concerned about the safety of the money in his savings account. Which type of depository institution should he choose?

He could safely choose either a commercial bank or a credit union, as long as his savings account balance meets the insurance requirements.

A credit union, since his deposits would be insured by the National Credit Union Association (NCUA)

A commercial bank, since his deposits would be insured by the Federal Deposit Insurance Corporation (FDIC)

Neither a commercial bank nor a credit union. Money is most safely kept at home in a personal safe or vault.

A key difference between commercial banks and credit unions is that:

Commercial banks are 'for-profit’ and credit unions are 'not-for-profit’

Commercial banks offer more services, such debit cards, and online banking, than credit unions.

Commercial banks typically pay higher interest rates than credit unions.

Credit unions are more commonly located in rural area while commercial banks are more commonly located in urban areas.

Savings tools offered by depository institutions may earn interest. Which of the following statements is NOT TRUE about interest?

When earning interest, look for low rates.

When paying interest, look for low rates.

Interest is the price paid for using someone else’s money.

The amount of interest earned or paid is determined by the interest rate.

2.01 Introduction to Dipository Institutions

2.01 Introduction to Dipository Institutions | Quizalize

Q 1/8
Score 0
Ariel is saving money to purchase a new computer before she leaves for college in two years. She wants to open a special account at a depository institution to keep her saved money safe. She has asked you for advice on which type of account would be best for her. What would be the best advice for Ariel?
30
Check several depository institutions and choose one with a free, no-interest checking account. That way, when Ariel has saved enough for her computer she can simply write a check to pay for it.
Shop around for the depository institution with the highest interest rates for their savings accounts. She would be able to make regular savings deposits and earn interest while she is saving up for the computer.
Look for a Credit Union that offers share draft accounts. These secure accounts are designed especially for saving for long-term financial goals.
Shop around for a depository institution that offers safe deposit boxes. These accounts offer extra security for deposits and can be set up to allow her to withdraw her money when she needs it.
Q 2/8
Score 0
Since Taylor was a young child she has kept her savings in a piggy bank. She likes this method of saving because she can have immediate access to the money if she needs it. Recently, in a class at school, discussion focused on why depository institutions are safer than her piggy bank. Some students’ comments were based on fact while others were based on myths. Which aspect of security at a depository institution is NOT TRUE?
30
Information about depositors and their accounts is kept in secure data storage.
Depository institutions have insurance protection for up to $250,000 per depositor per account type so if something happened to the money in the bank, you would get it back as long as the deposited amount was no more than the insurance limit.
All money stored at a depository institution is kept safe at all times by numerous security measures.
Depository institutions have insurance protection. Depositors can have multiple accounts insured at the same depository institution as long as each account has no more than 100000.

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