Banking Purpose

Personal Financial Literacy Review

By Tamica Jones

Multiple Select

My ________________ is money that I earned from doing work.

• Salary

• Fee

• Income

• Overdraft

Multiple Choice

Lucy wants to deposit her weekly allowance into a savings account. What is one good reason to to put her money in a savings account?

• it is hard to withdraw and deposit money into it

• it pays interest

• the money can be lost or stolen

• you must have a lot of money to open a savings account

Multiple Choice

What are the two types of accounts available at banks and credit unions?

• Checking and Savings
• Checking and Loans
• Savings and Loans
• Debit and Credit

Multiple Choice

Mrs. Smith is saving money to buy a car. At first, she kept the money she saved at home, but then her husband persuaded her to deposit the money into an account at the bank.

Which statement describes the best reason for Mrs. Smith to deposit the money into an account at the bank?

• The money is safer in the bank than at home.

• She can withdraw her money at any time.

• The bank is near her house.

• She will receive a checkbook in her favorite color.

Multiple Choice

Which is a good reason to use a Financial Institution?

• Putting your allowance in a safe place

• Lending your friend $5

• Borrowing money to buy a new toy

Multiple Choice

What does the word DEPOSIT mean in regards to money and banks.

• to put money or other valuables in a safe place
• to spend
• to save
• to take money or valuables out of a safe place

Multiple Choice

When you pay back a loan, you not only pay the amount you borrowed, you also pay it back with _____________

• Interest

• Deposit

• Withdrawal

• Checking

Multiple Choice

Take money out from your bank account.

• withdraw
• deposit
• pay bills
• savings

Multiple Choice

Which of the following is NOT a service a bank provides

• It makes loans to other customers.

• It provides credit cards for its customers

• Customers can deposit and withdraw money from their accounts

• Helps you loan money to your friends

Multiple Choice

What is it?

• debit card

• check

Multiple Choice

A loan payment is a fixed expense.

• True

• False

Multiple Choice

Visa, American Express, Mastercard - What are they?

• Money

• credit cards

Multiple Choice

What is it?

• ATM

• car

Multiple Choice

What is this?

• Bills

• Money

Multiple Choice

A card that uses money directly from your bank account

• Debit Card 
• Credit Card 
• Pokemon Card 
• Baseball Card 

Multiple Choice

What is the formula for PROFIT?

• Profit + Costs = Revenue

• Revenue - Expenses = Profit

• Income x Total Costs = Profit

• Revenue - Total Costs = Revenue

Multiple Choice

Donovan made a picnic table to sell for profit. He made a list about what he did:

*price paid for wood: $45

*price paid for nails: $5

*cost of paint: $10

*selling price: $100

What was Donovan's profit from selling the table?

• $55

• $60

• $40

• $50

Multiple Choice

Dara makes bracelets and sells them in her shop. Which is a fixed expense for Dara’s business?

• the cost of the beads

• the cost of the string

• the cost of advertising

• rent for her shop

Multiple Choice

Brooke made a blanket and sold it for a profit. She paid $20 for fabric and $3 for thread. She sold the blanket for $62.50. How much profit did Brooke earn?

• $42.50

• $23

• $85.50

• $39.50

Multiple Choice

To take money out of an account is called....

• annual

• withdrawal

• fee

• deposit

Multiple Choice

When you put money into an account you are making a....

• withdrawal

• fee

• income

• deposit

Multiple Select

The main purpose of financial institutions is

• to keep money safe

• lend money to customers

• borrow money from their customers

• tell you who to give money to

Multiple Choice

The Brown family orders pizza from Eat Around Pizza on special occasions. Sometimes they add a side of wings, and sometimes they don't.

Is the money the Brown family spends at Eat Around Pizza a fixed expense or a variable expense?

• Fixed Expense

• Variable Expense

Multiple Choice

The Jones family has cable television at their house so they can watch their favorite shows. They pay $85 a month for the cable television.

Is the money the Jones family spends on cable television a fixed expense or a variable expense?

• Fixed Expense

• Variable Expense

Multiple Choice

Electricity bill

• neither

• variable expense

• fixed expense

• both

Multiple Choice

Haircut

• Fixed Expense
• Variable Expense

Multiple Choice

Monthly supply cost for a business

• Fixed Expense
• Variable Expense