Econ Unit 4 Test

What is the difference between a bank and a credit union?

• Banks are used for individuals, and credit unions are used by companies.

• Banks are used by companies, and credit unions are individuals.

• Banks are non-profit organizations, and credit unions are for-profit organizations.

• Banks are for-profit organizations, and credit unions are non-profit organizations.

What are overdraft fees?

• What the bank charges when you charge more to your credit cards than your maximum fee.

• What the bank charges when you withdraw more money from your checking account than what was in it.

• When the bank charges you for not paying your interest.

• None of the above

What do you need to open a bank account before you turn 18?

• A credit score over 600

• An adult as the co-owner

• A $5000 deposit

• A signed information paper from your job.

What is the purpose of a checking account?

• To save money long term

• To save money, but still be able to access it during times of need.

• It is money that people can you use with checks.

• It is money that is meant for daily spending.

What is the purpose of a savings account?

• To save money long term

• To save money, but still be able to access it during times of need.

• It is money that people can you use with checks.

• It is money that is meant for daily spending.

How much should you be able to put down on a house?

• 10%

• 15%

• 20%

• 25%

What do you have to have if you are not able put down the minimum down payment on a house?

• Mortgage Insurance

• Someone to Cosign the loan

• Lower Intrest

• None of the above

What is an investment?

• Creating items you want to sale.

• Putting valuable items up for sale

• Trading items

• Buying an item in hopes for a profit.

What is the general rule of investing?

• Higher risk: Lower reward

  Lower risk: Higher reward

• Higher risk: Higher reward

  Lower risk: Higher reward

• Higher risk: Higher reward

  Lower risk: Lower reward

• Higher risk: Lower reward

  Lower risk: Lower reward

What are you called if you own stock in a company?

• Fiduciary

• stocker holder

• stockbroker

• finance officer