JA Financial Literacy: Theme Two

Front

What distinguishes a bank from a credit union?

Back

Banks aim to generate profit, while credit unions use profits to benefit their members.

Front

Sasha is looking for a bank that operates 24/7 and is accessible internationally. Which bank should she opt for?

Back

Internet bank

Front

What makes higher-interest checking and savings accounts more advantageous?

Back

They accelerate your rate of return.

Front

Identify which option is not a payment method using a checking account: EFT, Debit card, Credit card, Personal check.

Back

Credit card

Front

What is the term for regularly setting aside a specific amount of money for emergencies or future savings?

Back

Paying yourself first

Front

What will be the balance in a savings account after one year if $500.00 is deposited at an annual interest rate of 10% compounded yearly?

Back

$550.00

Front

What is the term for the most valuable alternative forgone when a decision is made due to limited resources?

Back

Opportunity cost

Front

The Rule of 72 is used to calculate:

Back

The duration for an investment to double in value

Front

How is an individual's net worth calculated?

Back

It is the sum of their total assets and bank account balances, minus liabilities.

Front

What is the function of a transaction register?

Back

To log written checks, maintain a continuous balance of your bank account, and monitor all your deposits, payments, and purchases.