Econ Unit 4 Test

Front

What is the difference between a bank and a credit union?

Back

Banks are for-profit organizations, and credit unions are non-profit organizations.

Front

What are overdraft fees?

Back

What the bank charges when you withdraw more money from your checking account than what was in it.

Front

What do you need to open a bank account before you turn 18?

Back

An adult as the co-owner

Front

What is the purpose of a checking account?

Back

It is money that is meant for daily spending.

Front

What is the purpose of a savings account?

Back

To save money, but still be able to access it during times of need.

Front

How much should you be able to put down on a house?

Back

20%

Front

What do you have to have if you are not able to put down the minimum down payment on a house?

Back

Mortgage Insurance

Front

What is an investment?

Back

Buying an item in hopes for a profit.

Front

What is the general rule of investing?

Back

Higher risk: Higher reward; Lower risk: Lower reward

Front

What are you called if you own stock in a company?

Back

stocker holder