Depository Institutions
Taxes
Depository Institutions
Taxes
Depository Institutions
100
What is a Depository Institution?
A business that provides financial services
100
What are taxes?
Money demanded by government to fund certain things
100
What are the two most common savings tools?
Checking and saving accounts
100
What is payroll tax?
Tax on earned income to fund social security and medicare.
100
What is interest?
The price paid for using someone else's money
200
What are the two main types of depository institutions we discussed in class?
A Commercial bank and Credit Union
200
Name 1 benefit of taxes.
Roads, libraries, military, public schools, police, fire department, recreation, etc.
200
What are two characteristics of a savings account?
Saving designed to hold money limited withdraws
200
What is property tax? And what would be one thing you would have to pay property tax on?
Taxes on property such as lands, buildings, and motor vehicles.
200

What are two characteristics of a checking account?

Very liquid and can easily pay bills from it.

300

What are the two main characteristics of a commercial bank?

For profit and open to anyone

300
What is a taxpayer?
One who pays for national, state, county, or municipal government.
300

What are the three characteristics of a Credit Union?

Owned by members and non profit

300
What is sales tax? What is excise tax?
Sales tax is tax on items purchased in a retail store. Excise tax is tax on consumption items (gas, hotel rooms, airplane tickets, etc.)
300
List and describe 3 ways that you can endorse a check.
Sign it sign deposit only sign pay to the order of _____
400
Name one company who insures each depository institution and for how much?
FDIC or NCUA
400
How is income tax determined?
Higher income means higher taxes.
400
What does reconciling an account mean?
proving or documenting if an account balance is correct
400
What percentage of earned income goes to Social Security? And what about Medicare?
6.2% to Social Security. 1.45% to Medicare.
400

What is contact-less payment?

Transactions completed with no physical connection between the payment device and the point of sale device or store clerk

500

What factors should you consider when choosing a depository institution?

Location, Services, Fees

500
What is earned income? What is unearned income?
Earned income is money earned from employeement. Unearned income is money made from other sources.
500
Name two possible features of a depository institution.
Security Insurance
500

What is Social Security? What is medicare?

Both are payroll taxes. Social Security funds retirement. Medicare funds health care.

500
Name three possible features of a depository institution.
Financial advice Safe deposit box Special needs payment instrument
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