1. What is TRUE about government regulations in the United States when it comes to financial institutions? a. There are no government regulations for international banking.
b. Electronic fund transfers (EFT) are only regulated if they are made in commercial banks.
c. Banks that join the Federal Reserve System do not have to abide by all security regulations.
d. The government regulates which types of financial accounts are eligible for FDIC insurance.

2. Jennifer has recently found a new job at a local architectural firm. They have offered her a chance to invest money for her retirement. For every 6 percent Jennifer invests from her salary, her company will fund 3 percent. What type of investment does this describe?
a. money market mutual fund
b. certificate of deposit
c. bond
d. 401k

3. Patrice is trying to decide if she needs a checking account, a savings account, or both. She asks for your advice. What TRUE statement about these accounts can you share with Patrice?
a. Some savings and checking accounts have a minimum balance requirement and will charge a fee if the balance falls below this amount.
b. Savings and checking accounts are usually not available at web-only financial institutions.
c. Savings accounts generally earn no interest on the balance of the account.
d. Checking accounts generally earn a lot of interest on the balance of the account.

4. Sabrina is trying to decide between opening an account at a local commercial bank or at her college credit union. What TRUE statement about these two institutions will BEST influence her decision?
a. Since commercial banks are for-profit, they can often keep their costs down, which translates into higher interest rates for savings and lower rates on loans.
b. Since credit unions are for-profit, they can often keep their costs down, which translates into higher interest rates for savings and lower rates on loans.
c. Since commercial banks are nonprofit, they can often keep their costs down, which translates into higher interest rates for savings and lower rates on loans.
d. Since credit unions are nonprofit, they can often keep their costs down, which translates into higher interest rates for savings and lower rates on loans.

5. Michael keeps hearing a lot about stocks, bonds, and other types of investments, but he has no idea where to begin when it comes to investing. He is looking for an expert help him take his money and make investment purchases for him. Which type of business will best fit Michael’s interests?
a. brokerage firm
b. web-only financial institution
c. stock-held savings institution
d. life insurance company