Banking - Unit Test

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Juan saved $1,000 from his summer job cleaning pools. Which of these account types would work best for him if he doesn't need access to the money for a number of years AND wants to earn the highest interest rate? Options: Regular savings account, Money Market account, Checking account, Certificate of Deposit

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Certificate of Deposit

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Which of the following is an effective strategy for personal saving? Options: Wait until the end of the month and save whatever is left in your checking account, Save a certain percentage of each paycheck and deposit it directly into a savings account, Cover all of your wants and needs and save whatever is left over, Take out a payday loan so you can save before you receive your paycheck

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Save a certain percentage of each paycheck and deposit it directly into a savings account

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All of the following statements about bank accounts are true EXCEPT…
Options: Many banks pay interest on the money you deposit into your savings account, Historically, savings accounts earn higher returns than investments in the stock market, Money in a checking account is usually easy to access via ATM, debit card or check

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

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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 ______________.

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Needs, wants, savings

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

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Months

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Which of these is a reason someone might choose to open an online savings account rather than a savings account at a traditional bank?

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Online savings accounts typically pay higher interest rates on deposits

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Three of these statements best describe a checking account. Which statement best describes a savings account? Options: This account offers a convenient way to pay bills and access cash from an ATM, This account pays you interest on money you have put away for later to help your money grow, This account is automatically debited when you use a debit card, This account typically allows an unlimited number of transactions per month

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

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You are at the checkout counter at the local supermarket and use your debit card to pay for your groceries. Where does the money for this purchase come from?

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It is deducted directly from your checking account

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Which of the following transactions will REDUCE your checking account balance immediately? Options: Writing your monthly rent check which you will mail tomorrow, Using your debit card to pay for groceries at the supermarket, Using your credit card to pay for your school books, Depositing a check at a local bank branch

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Using your debit card to pay for groceries at the supermarket

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How often do customers typically receive a bank statement for their checking account?

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Monthly