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240. The Federal Reserve represents a "bankers' bank" because:
241. A __________ is a profit-seeking organization that receives deposits from individuals and
corporations and uses some of these deposits to make loans.
242. Commercial banks primarily serve two types of customers:
243. Which of the following represents the technical name for a checking account?
244. The technical name for a savings account is a:
245. A time deposit that earns interest is a ______________.
246. Traditionally, banks provide loans to individuals and companies according to the
recipient's _____________.
247. A(n) __________ accepts savings and checking account deposits and provides home
mortgage loans.
248. Savings and loan associations are sometimes known as:
249. __________ are nonprofit, member-owned financial cooperatives that offer a full variety of
banking services such as accepting deposits and making loans.
250. Traditionally, life insurance companies, pension funds, and brokerage firms are known as
________.
251. ____________ represent money set aside by corporations, nonprofit organizations, or
unions to cover part of the retirement needs of their members.
252. Commercial banks, savings and loan associations, and credit unions:
253. Originally, savings and loan associations:
254. Which of the following represents a nonbank?
255. During the early 1980s, the federal government responded to the severe problems
plaguing savings and loan associations by:
256. Herb has $20,000 in an interest-bearing time deposit with the Applebottom Bank and
Trust Company. While earning a relatively attractive rate of interest, Herb had to agree to not
withdraw any of the funds until the end of a three-year period. Herb's investment represents
a(n):
257. Pleased with the service provided by a national brokerage house when he bought and
sold stocks and bonds, Ted would like to have this brokerage firm handle more of his financial
needs. If Ted explores the services offered by such firms in more depth, he will find that:
258. The community college where Jake works requires all employees to contribute to a
pension fund. At this time, he is not too worried about the safety of this contribution because:
259. Shana works as an investment specialist for the Teamsters Union Central States Pension
Fund. Her job involves deciding how to invest the contributions paid into the fund. Which of the
following statements about Shana's job are true?
260. Which of the following represent an independent agency of the U.S. government that
insures bank deposits?
261. Tracing the causes of the recent banking crisis, which of the following organizations'
activities is not in the news as having been a contributor to the crisis?
262. How did banks contribute to the recent financial crisis?
263. The ________ insures holders of accounts in savings and loan associations.
264. Designed to create more confidence in banking institutions, the FDIC was established:
265. The __________ insures deposits held in credit unions.
266. The Federal Deposit Insurance Corporation (FDIC) operates as a(n):
267. The purpose of creating the FDIC was to:
268. Barry has $22,000 in a savings account with the Scott Credit Union. While economic
conditions have caused financial institutions to struggle, Barry feels that his money is safe due to
the fact that the credit union's accounts are protected by the:
269. Alfredo banks at a commercial bank that advertises its membership in the FDIC. This
means that:
270. After Bob and Jillian deposited nearly $30,000 in a savings account at Farmers National
Bank, the bank failed and filed for bankruptcy. Because the Farmers National Bank was an FDIC
member bank, Bob and Jillian:
271. Xavier deposited $75,000 in various individual accounts at his local credit union. He and
his wife also have a joint savings account worth $34,500. What portion of these deposits is
insured?
272. For banks, check-processing activities:
273. Which of the following is a major difference between Internet banks and traditional
banks?
274. The ________ provides the same results as a check because it withdraws funds from a
checking account.
