Business Finance Final Exam

Front

All of the following statements about bank accounts are true EXCEPT…
If the bank is FDIC-insured, your money, up to the FDIC limit, is safe even if the bank fails
Many banks pay interest on the money you deposit into your savings account
Money in a checking account is usually easy to access via ATM, debit card or check

Back

Historically, savings accounts earn higher returns than investments in the stock market

Front

All of the following are true about prepaid cards EXCEPT…

Back

Prepaid cards are a great way to build credit.

Front

If you follow the 50-30-20 rule of budgeting, you'll be putting 50% of your monthly income toward _______________, 30% of your monthly income toward _____________, and 20% of your monthly income toward ______________.

Back

Needs, wants, savings

Front

Which represents the BEST time to start saving for your retirement? Options: As soon as you have your first full-time job, Right after you pay off your student loans, Once you are debt-free, including paying off all credit cards, auto loans, and your mortgage, At age 45, so you have exactly 20 years until retirement

Back

As soon as you have your first full-time job

Front

Experts recommend that you accumulate enough to cover 3 to 6 __________________ of expenses in your emergency fund.

Back

Months

Front

Which of these is a reason someone might choose to open an online savings account rather than a savings account at a traditional bank? Options: Online savings accounts are FDIC insured to a higher limit, Online savings accounts typically pay higher interest rates, Online savings accounts are less likely to make you the victim of identity theft, Online savings accounts are created specifically for young adults.

Back

Online savings accounts typically pay higher interest rates

Front

Which statement best describes a savings account?

Back

pays you interest on money you have put away for later to help your money grow

Front

Where does your money come from when you pay with a debit card?

Back

Checking account

Front

Fill in the blanks: If inflation is _____________ your savings account interest rate then you will be ______________ purchasing power.

Back

Higher than, losing

Front

FDIC Insurance is...

Back

Protection for bank customers’ deposits up to $250,000, guaranteeing their money is still available if the bank goes out of business.