Money, Banking, & Financial Literacy Assessment

Front

What are the three functions of money?

Back

Medium of exchange, store of value, unit of account

Front

What is money?

Back

Something that people will accept as payment for goods and services

Front

What are the main functions of banks? Options: Store money, earn money, borrow money; Trade goods and services, measure costs, earn income; Invest money, save money, lend money; Buy money, sell money, charge interest

Back

Store money, earn money, borrow money

Front

What is savings?

Back

Income not spent on immediate wants

Front

What is the function of money that allows people to measure the relative costs of goods and services?

Back

Unit of account

Front

How do banks earn money?

Back

By charging interest or fees for their services

Front

What happens to a stock owner if the stock price increases?

Back

They make money.

Front

What is the difference between a savings account and a checking account?

Back

A savings account is for long-term investments, while a checking account is for daily transactions; A savings account can't be used for daily transactions, while a checking account can; A savings account has a higher interest rate, while a checking account has a lower interest rate.

Front

What is the purpose of a checking account?

Back

To facilitate daily financial transactions

Front

Why do banks charge fees for their services?

Back

To cover the cost of providing services