Savings Midterm

When a bank says their savings account earns 1% interest, that typically means you will earn 1% interest over what period of time?

• Daily

• Monthly

• Quarterly

  Every 3 months

• Annually

• Every 2 years

How much money should try to save in your emergency fund?

• 3-6 days worth of expenses

• 3-6 weeks worth of expenses

• 3-6 months of expenses

• 3-6 year's worth of expenses

To maximize saving, the rate of return for saving accounts should be exactly equal to the rate of inflation

• True

• False

How can credit cards make it more challenging to save?

• Many banks will not let you have a savings account if you already have a credit card.

• Credit cards make it easier to spend money

• you will be charged a fee for every credit card transaction

With savings accounts can you use the money using a debit card?

• TRUE

• FALSE

If you used the 50-30-20 rule of budgeting, how much money would you be saving?

• 20%

• 30%

• 50%

• 100%

Which one of the following individuals is the wealthest?

• Keith owns a $500,000home and has a $460 mortgage

• Maria owns a $15,000 car and owes $45,000 in student loans.

• Denise owns a $50,000 car and has a $5000 remaining on her car loan

Money market accounts can offer better rates than other types of savings accounts. You may be able to write checks from your account or access your money using a debit or ATM card.

• True

• False

Which of the following is an example of online bill pay

• Using a person -to-person app to repay your friend for dinner

• Having a mobile payment service to purchase your groceries at a store

• Having your bank send your rent to the landlord each month

• Having your check direct deposited into your bank account

Which of the following statements is an advantage of online banking?

• Once you set up online banking, your bank will waive overdraft, ATM and monthly fees

• Using online banking, you can request transfers, pay bills, and automate your savings without visiting the bank branch

• Online banking is the only way you can make onlline purchases

• With online banking, your bank will also file your taxes for you.