Banking & Investment Terms

Which would you use to get cash from your bank account?

• Phone

• Computer

• ATM

What term describes the interest rate for a loan?

• APR

• ATM

• 529

• 401(k)

Which account would you use to pay your monthly bills?

• Savings Account

• 401(k)

• IRA

• Checking Account

James Maxwell said this "is telling your money where to go, instead of wondering where it went." What do you think he was talking about?

• Collateral

• Credit

• Compound Interest

• Budget

Which is a way for a company to pay a portion of its profit to shareholders? (Shareholders are also called Stock Owners)

• Credit

• Dividend

• Interest

• 401(k)

Banks often charge high fees for overdrafts. What is an overdraft?

• When you don't have enough money in your account, but the bank pays anyway

• When you bounce a check at a store

• When your account balance goes over the minimum required amount

• When your grandma passes gas while standing over you

Which term describes the next best thing you could do with your time or money after you choose to do or buy one thing instead of another?

• Mutual Fund

• Net Income

• Rate of Return

• Opportunity Cost

Gross Income is the full amount of money you earned based on your work. My friend once complained, "My Net Income is gross!" What is Net Income?

• The amount of your paycheck AFTER taxes and deductions

• The amount of your paycheck BEFORE taxes and deductions

• The amount of TAXES you pay

• The FEE charged by your employer for giving you a paper check

Which of these is an investment that gives you part ownership of a company?

• Principal

• Rate of Return

• Stock

• Real Estate

Would you prefer a higher Rate of Return on an investment or a lower Rate of Return? (Assuming you want your money to grow)

• Higher

• Lower