Question 1

How does a financial institution encourage savings?

Accepted Answer

Pay Interest

Answer

Provide a safe place for you to keep your money

Answer

Give away free prizes

Answer

Question 2

Which of the following is NOT a financial institution?

Accepted Answer

Realty company

Answer

Banks

Answer

Credit unions

Answer

Savings and loans

Question 3

How do financial institutions obtain funds to give loans to consumers?

Accepted Answer

Customers deposit money into the financial institutions.

Answer

Local governments give tax revenues to the financial institutions.

Answer

The Federal Reserve makes more money for financial institutions to loan.

Answer

Government agencies loan money to the financial institutions.

Question 4

How does a financial institution encourage savings?

Accepted Answer

Pay interest

Answer

Give away free prizes

Answer

Provide a safe place for you to keep your money

Answer

Question 5

Which of the following is NOT a financial institution?

Accepted Answer

Realty company

Answer

Credit unions

Answer

Savings and loans

Answer

Banks

Question 6

Private financial institutions act as intermediaries between savers and --?

Accepted Answer

borrowers

Answer

businesses

Answer

taxation

Answer

the government

Question 7

Which type of private financial institution is created for members and is non-profit?

Accepted Answer

credit union

Answer

savings and loan

Answer

bank

Answer

internet bank

Question 8

What do financial institutions do with your deposits?

Accepted Answer

make loans

Answer

put it in their vault

Answer

place it in other banks for safe keeping

Answer

keep it in security boxes

Question 9

All of the following  are financial institutions EXCEPT-

Accepted Answer

federal reserve system

Answer

credit union

Answer

bank

Answer

savings and loan

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