Banking Flashcard

Front

Which of the following is a false statement?
Banks are insured by the government.
Money can be stolen or lost if you keep it at home.
If your bank goes out of business, you lose your money.
Your money can grow if you keep it in a bank account.

Back

If your bank goes out of business, you lose your money.

Front

The amount of money you need to maintain in your account to avoid a fee is the _______.

Back

minimum balance

Front

A credit union is different from a bank mainly because _______.

Back

credit unions invest in the community and often offer classes on opening businesses and managing debt

Front

Which of the following is a way your bank can make money? Your bank can charge you a fee for using an ATM from another bank. Your bank can charge an annual or monthly fee just for having an account. Your bank can charge fees if your balance goes below a certain amount.

Back

all of the above

Front

Which of the following is a false statement?
You can purchase items with money from your checking account by using a debit card.
You can purchase items with money from your checking account by writing a check.
A debit card can be used to withdraw cash from an ATM.
A debit card can be used to pay for a purchase if your checking account is empty.

Back

A debit card can be used to pay for a purchase if your checking account is empty.

Front

Gustavo writes a check to his landlord for $450, but he only has $300 in his checking account. What will happen?

Back

The check will bounce, or fail to process.

Front

Sylvia deposits $50 into a savings account with a 2% interest rate. Using the formula for simple interest, how much will she have in the account in 5 years?

Back

$55.00

Front

Once a month, Eddie cashes his paycheck at a check cashing service that charges a 1% fee. If Eddie gets paid $500 per month, which of the following will be true?

Back

Eddie takes home $505 every month.

Front

Brendan has $200 in a savings account with a 1% interest rate. Using the formula for simple interest, how much will he earn in interest after 7 years?

Back

$14

Front

Josie has $100 in a savings account with a 2% interest rate. Using the formula for simple interest, how much will she earn in interest after 7 years?

Back

$14