Personal Finance - Chapter 8: Multiple Choice

Front

What is reconciling your account?

Back

Verifying your bank's online account statements for accuracy.

Front

What is a potential drawback of online banks?

Back

It's often more difficult to get in touch with a real person when you need assistance.

Front

What are some services offered by banks?

Back

Mortgages, check writing, and debit cards.

Front

What do all predatory financial services have in common?

Back

You end up losing money with all of them.

Front

What should you avoid in bank services?

Back

Any service that leads to debt.

Front

What is the purpose of a budget?

Back

To plan and track your income and expenses.

Front

What is a debit card?

Back

A card that allows you to make purchases using money directly from your bank account.

Front

What is the difference between saving and investing?

Back

Saving is setting aside money for short-term needs, while investing is using money to purchase assets for long-term growth.

Front

What is interest?

Back

The cost of borrowing money or the earnings from saving money.

Front

What is a checking account?

Back

A bank account that allows for deposits and withdrawals, typically used for daily transactions.