JA Financial Literacy: Theme Two

Front

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

Back

Banks exist to make a profit; credit unions re-invest profit to benefit members.

Front

Sasha needs a bank that is open 24/7 and accessible overseas. Which bank should she choose?

Back

Internet bank

Front

Why are higher-interest checking and savings accounts preferable?

Back

They speed up your rate of return.

Front

Which of the following is not a method of payment using a checking account? EFT, Debit card, Credit card, Personal check

Back

Credit card

Front

Adding a fixed amount to your savings each month to have in case of emergency or to save for the future is called:

Back

Paying yourself first

Front

If $500.00 is placed in a savings account paying 10 percent per year compounded annually, what will the account balance be at the end of the year?

Back

$550.00

Front

The highest-value alternative given up when a choice is made due to scarcity is:

Back

Opportunity cost

Front

The Rule of 72 is a method to determine:

Back

The time it will take an amount to double in value

Front

How is a person’s net worth determined?

Back

It is their total assets combined with the amount in their bank accounts, minus debts.

Front

What is the purpose of a transaction register?

Back

To record checks that have been written, to keep a running balance of your bank account, to keep track of all your deposits, payments, and purchases.