Basic Banking Functions And Terms! Trivia Quiz

A loan is a sum of money that is borrowed by a member and typically paid back in increments, such as monthly payments, until the balance is paid off in full. It is a financial arrangement where one party lends money to another party, usually with the expectation that it will be repaid with interest over a specified period of time. Loans are commonly used for various purposes such as buying a house, financing education, or starting a business.

A credit union is a financial institution that operates on a not-for-profit basis and is owned by its members. The members of a credit union appoint board members who serve voluntarily and without compensation. This structure allows credit unions to prioritize the needs and interests of their members, offering them better rates and services compared to traditional banks. Unlike banks, credit unions are focused on serving their members rather than maximizing profits. Therefore, the correct answer is Credit Union.

A bank is a financial institution that is for-profit and specializes in servicing the needs of businesses. Banks provide a wide range of services such as loans, deposits, and investment opportunities to help businesses manage their finances. They play a crucial role in the economy by facilitating transactions and providing financial services to individuals and businesses.

The statement "Not for profit, not for charity, but for service" accurately captures the philosophy of credit unions. Unlike traditional banks, credit unions are member-owned financial cooperatives that prioritize serving their members' best interests rather than maximizing profits. This philosophy is reflected in their lower fees, competitive interest rates, and personalized customer service. By operating on a not-for-profit basis, credit unions are able to reinvest their earnings back into the organization to benefit their members and the community. Therefore, the given answer "True" is correct.

Money market accounts are a type of savings account that typically offer higher interest rates compared to regular savings accounts. One key feature that sets them apart from certificate of deposits (CDs) is the ability for members to deposit money into the account at any time. Unlike CDs, which have fixed terms and do not allow additional deposits after the initial investment, money market accounts provide flexibility for members to add funds as needed while still earning competitive interest rates. Therefore, the statement "Money market accounts differ from certificate of deposits (CDs) because members can deposit money into the account at any time" is true.

Maturity is the date stated on an account signifying the end of the term. This term is commonly used in financial contexts, such as for loans or investments. When an account reaches its maturity date, it means that the agreed-upon period has ended and the account holder is now eligible to receive the funds or benefits associated with it. The other options, such as loan, credit card, and finale, are not specifically related to the concept of an account's end date.

MICR stands for Magnetic Ink Character Recognition. It is a technology developed by the ABA (American Bankers Association) that allows for the electronic reading of pre-coded numbers printed on documents, such as checks. This technology uses a special magnetic ink that can be easily read by magnetic scanners, making it efficient and accurate for processing large volumes of checks and other financial documents.

A credit card allows members to purchase goods and services on credit, meaning they can make purchases without immediately paying for them. The cardholder can borrow money from the credit card issuer up to a certain credit limit and is required to make regular payments to repay the borrowed amount. This feature of a credit card distinguishes it from a debit card, savings account, or checking account, as none of these options provide the same ability to make purchases on credit.

A hold is a restriction that prevents a person from accessing funds in their account or restricts the use of a payment method. It can be placed on an account for various reasons, such as to verify a check's authenticity or to prevent fraudulent activity. During a hold, the account holder may not be able to withdraw or use the funds until the hold is lifted.

The correct answer is 6 because the question asks for the number of locations that MLCU has, and out of the given options, 6 is the highest number.

The correct answer is NCUA. NCUA stands for National Credit Union Administration, which is the federal agency responsible for regulating and overseeing credit unions in the United States. One of their main functions is to insure member accounts in credit unions, providing protection for deposits up to $250,000 per account ownership.

Traditional IRA accounts require members to make yearly withdrawals at the age of 70 1/2. This is because the IRS mandates that individuals with traditional IRA accounts must start taking required minimum distributions (RMDs) from their accounts by April 1st of the year following the year they turn 70 1/2. These RMDs are taxable and help ensure that individuals use their retirement savings for retirement purposes rather than leaving it untouched indefinitely. Therefore, the statement "True" is correct.

The explanation for the correct answer, which is False, is that a certificate of deposit (CD) is a fixed-term investment where the money is locked in for a specific period, in this case, 18 months. The member is not allowed to deposit additional money into the CD during this term.

We use laserfiche as our filing cabinet. MVI is used to sign documents electronically and make electronic annotations