ACP First Semester Financial Math Review

Front

Overdraft protection...

Back

Allows you to withdraw more money than you have in your account

Front

Which of the following is TRUE about banks and credit unions? Banks are for-profit institutions, while credit unions are non-profit, Banks offer higher interest rates on savings accounts than credit unions, Credit unions are insured by the FDIC, while banks are not, Banks are owned by their customers, while credit unions are owned by shareholders

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Banks are for-profit institutions, while credit unions are non-profit

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What is a typical overdraft fee?

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$25

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How can you protect your checking account when using online and mobile banking? Options: Use strong and unique passwords, Avoid using public Wi-Fi networks, Regularly monitor your account activity, All of the above

Back

All of the above

Front

Why is understanding a bank's fees particularly important for students or young adults?

Back

They are more likely to have a low income

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Which is NOT a typical goal for a savings account? Saving for retirement, Saving for a down payment on a house, Saving for a vacation, Saving for a new car

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Saving for retirement

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About how much should you save in an emergency fund?

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6 months of expenses

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What are some reasons for why so many Americans live paycheck-to-paycheck? Low wages, High cost of living, Lack of financial education

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All of the above

Front

How is compound interest different than simple interest?

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Compound interest is calculated more frequently.

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How does inflation impact the money in your savings account?

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It decreases the value of your money