Banking Unit Test-Period 1

Front

Juan saved $1,000 from his summer job cleaning pools. Which of these account types would work best for him if he doesn't need access to the money for a number of years AND wants to earn the highest interest rate? Regular savings account, Money Market account, Checking account, Certificate of Deposit

Back

Certificate of Deposit

Front

Which of the following is an effective strategy for personal saving?
- Wait until the end of the month and save whatever is left in your checking account
- Save a certain percentage of each paycheck and deposit it directly into a savings account
- Cover all of your wants and needs and save whatever is left over
- Take out a payday loan so you can save before you receive your paycheck

Back

Save a certain percentage of each paycheck and deposit it directly into a savings account

Front

All of the following statements about bank accounts are true EXCEPT:
If the bank is FDIC-insured, your money, up to the FDIC limit, is safe even if the bank fails
Many banks pay interest on the money you deposit into your savings account
Money in a checking account is usually easy to access via ATM, debit card or check

Back

Historically, savings accounts earn higher returns than investments in the stock market

Front

All of the following are true about prepaid cards EXCEPT...
a. Prepaid cards typically include a lot of fees
b. Prepaid cards are a useful option for someone who is unbanked to make online purchases
c. Prepaid cards are a great way to build credit
Prepaid cards are usually accepted anywhere that debit and credit cards are accepted

Back

Prepaid cards are a great way to build credit

Front

Which represents the BEST time to start saving for your retirement? Options: As soon as you have your first full-time job, Right after you pay off your student loans, Once you are debt-free, including paying off all credit cards, auto loans, and your mortgage, At age 45, so you have exactly 20 years until retirement

Back

As soon as you have your first full-time job

Front

Which of the following statements is TRUE?
The majority of Americans have an adequate emergency fund
The majority of Americans have sufficient amounts of money saved for retirement
The majority of Americans have an adequate emergency fund, but do NOT have sufficient amounts of money saved for retirement
The majority of Americans do NOT have an adequate emergency fund or sufficient amounts of money saved for retirement

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The majority of Americans do NOT have an adequate emergency fund or sufficient amounts of money saved for retirement

Front

Experts recommend that you accumulate enough to cover 3 to 6 _______________ of expenses in your emergency fund.

Back

months

Front

How often do most people receive a paycheck?

Back

Weeks

Front

Which statement best describes a savings account? Options: This account offers a convenient way to pay bills and access cash from an ATM, This account pays you interest on money you have put away for later to help your money grow, This account is automatically debited when you use a debit card, This account typically allows an unlimited number of transactions per month

Back

This account pays you interest on money you have put away for later to help your money grow

Front

You overhear your Aunt Tina tell your mom that she, her husband, and their kids are "living paycheck to paycheck." What does Aunt Tina mean by that?

Back

Aunt Tina and her family don't have any money saved, and their paychecks are just barely covering monthly expenses.