Banking

Third lesson

Banking

Page 5 in the Finance Workbook

1

Did you write the name of the account in the table of your workbook?
(if not GO BACK)

Did you fill in the blanks for the first account in your workbook?

Multiple Choice

Do you have frequent/easy access to your money in a checking account?

• Yes

• No

Multiple Choice

Are you limited to when you can withdraw/deposit money with a Checking account?

• Yes

• No

Multiple Choice

True or False you are limited on how often you can withdraw money from a savings account.

• True

• False

Multiple Choice

True or False you earn interest with a savings account.

• True

• False

Multiple Choice

You can make frequent withdrawals from a CD (certificate of deposit)

• True

• False

Multiple Choice

How long you keep your money in a CD (certificate of deposit) is called.....

• enjoyable

• length of time

• term

• opportunity

Multiple Select

Which account(s) earn you interest?

• Checking

• Savings

• CD

• All of the above

Fill in the Blanks

The amount of money you put into your bank account to open it is called the

Multiple Select

What THREE items do you need to open a bank account?

• An ID (like a drivers license).

• A note of good standing for your credit.

• Your social security number.

• An initial deposit, the money you plan to put into your account.

FDIC Insurance

9

FDIC Insurance

× The Federal Deposit Insurance Corporation

10

-They insure up to $250,000 per account

This means the FDIC will make sure you don’t lose
the money in your accounts.

Multiple Choice

How much does the FDIC insure?

• $100,000

• $250,000

• $250,000,000

• There is no limit!

Inflation

of goods and
services
increases, which
means your
money can’t buy
as much.

11

× When the price

Inflation

Inflation affects the "purchasing power" of

currency. Over time let's say the amount of food or
other goods you can get for you dollar changes.
With inflation you can't buy as much for one dollar.
That's why some people say "A dollar doesn't go as
far as it used to". With deflation you can buy more
than you could before.

12

13

How banks really work

14

How banks really work

The bank is counting on you keeping your money

there and not withdrawing it. This is why you are
limited to how many withdrawals you make from a
savings account, or why you’re charged a penalty
for removing money from a CD early.

15

Let’s actually look at some bank accounts!!

× Schoology → Finance → Exploring Bank Accounts

- Webquest

× You will be using the Demotte State Bank website

(links are in the assignment!) to answer questions
about accounts they have.

16
accounts