1. Involves an automatic loan from the bank to the account holder in the amount of the insufficient checkwithout notifying the account holder, and the account holders payment of a large flat NSF fee and the repayment of the borrowed funds, usually in less than a month. This describes: ____________.

a. A courtesy overdraft/bounce protection

b. An automatic overdraft loan agreement

c. An automatic funds transfer agreement

2. This program is usually provided automatically to bank customers, unless explicitly declined, and requires the account holder to practice good account management to avoid relatively expensive bank penalties. This describes: _________________.

a. A courtesy overdraft/bounce protection

b. An automatic overdraft loan agreement

c. An automatic funds transfer agreement

3. This program can quickly spiral into a very expensive incident because the bank typically does not notify the account holder of the overdraft condition or the imposition of any NSF fees. This describes: ____________.

a. A courtesy overdraft/bounce protection

b. An automatic overdraft loan agreement

c. An automatic funds transfer agreement

4. Just as depository institutions differ from non-depository institutions, there are also differences between the structure and activities of, and the financial products and services provided by, various depository institutions. Read the following statements and indicate which, if any, are true. Check all that apply.

a. Mutual savings banks and credit unions are similar in that both are owned by their depositors, who share in their profits.

b. Not all savings banks are mutual savings banks. Some exhibit a mutual structure, while others are organized as corporations.

c. Members of both credit unions and mutual savings banks share a common bond or affiliation.