1) What is the maximum amount of money that the FDIC insures per taxpayer ID number per bank? a) $1,000,000 b) $500,000 c) $250,000 d) $100,000 2) Which type of account allows the Association to safely have up to $50,000,000 at the same bank? a) ICS (Insured Cash Sweep) b) CD (Certificate of Deposit) c) Money Market d) CDARS (Certificate of Deposit Account Registry Service) 3) What should managers and accountants do if anticipated revenues are expected to put the Association over the FDIC limit? a) Notify the board and suggest placing funds in CDARs or ICS accounts or opening an account at another bank. b) Withdraw the excess funds and keep them in cash. c) Transfer the excess funds to a personal account of a trusted board member. d) Ignore the limit and hope that the bank does not fail. 4) What is the difference between CDs and CDARs? a) CDs are accounts held by the Association’s bank for a given period of time, while CDARs are accounts that are swept out of the Association’s account and placed into deposit accounts at other institutions b) CDs are accounts that are swept out of the Association’s account and placed into deposit accounts at other institutions, while CDARs are accounts held by the Association’s bank for a given period of time. c) CDs are accounts held by the Association’s bank for a given period of time, while CDARs are products where the bank buys CDs from other banks on behalf of the Association to maintain FDIC coverage. d) CDs are products where the bank buys CDs from other banks on behalf of the Association to maintain FDIC coverage, while CDARs are accounts held by the Association’s bank for a given period of time. 5) What is the minimum opening balance for an ICS account? a) $10,000 b) $25,000 c) $50,000 d) $100,000 6) What is the advantage of a Money Market account over a checking account? a) It has unlimited withdrawals per month. b) It has a higher interest rate. c) It has no minimum opening balance. d) It has no FDIC limit. 7) Why have we tried to keep most accounts with First Citizens Bank? a) Because it has the highest interest rates among all banks. b) Because it has the highest FDIC limit among all banks. c) Because it is the only bank that offers CDARs and ICS accounts. d) Because it is much easier to manage.

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