Personal Finance Midterm Review

What is an exchange rate? (Select the best answer.)

• How much dollars are worth when they are exchanged with coins

• How much bills are worth when they're exchanged with cash

• How much a currency is worth when it's exchanged with another country's currency

• How much bonds are worth when they're exchanged with cash

What is the amount of money in a bank account called? (Select the best answer.)

• Balance

• Debit

• Account total

• Check register

Which of the following is less important to consider when choosing a bank? (Select the best answer.)

• The types of accounts the bank offers

• The number of employees at each bank branch

• The distance between the bank and your home

• The financial services the bank offers

Which of the following is typically not a feature of checking accounts? (Select the best answer.)

• ATM transactions

• A minimum balance

• Interest

• A debit card

What is an overdraft? (Select the best answer.)

• Going below the minimum balance of your account

• Spending more money than you have in your account

• Making purchases at too many different retailers

• Not making deposits frequently enough

What does using your checking register let you do? (Select the best answer.)

• Make electronic transfer payments

• Keep track of the visits you make to a bank branch

• Keep track of transactions that affect an account

• Make purchases online

What is direct deposit? (Select the best answer.)

• A deposit you make at an ATM

• A deposit an employer makes into an employee's account

• An interest payment from the bank

• A deposit you make between two bank accounts

A __________ is when you move money from one bank account to another. (Select the best answer.)

• Withdrawal

• Deposit

• Transfer

• ATM transaction

What does the FDIC do? (Select the best answer.)

• Provides bank account information to customers

• Regulates national interest rates

• Prints currency

• Provides insurance on money in bank accounts

The money you earn by having a job is called:

• amount

• income

• expense

• starting point