Career Prep: Bankings, Savings and Investing Test

What is a Federal Deposit Insurance Corporation (FDIC)?

• A Trust Fund

• Federal Life Insurance agency

• A savings and loan association

• Federal Insurance agency that helps to regulate bank accounts 

What does reconciling your bank balance mean?

• Brings balances into agreement

• Adds interest to account

• Cancels your bank account

• Deducts checks from bank statement balance

What is a credit union?

• A cool bank than only certain people get invited to be a part of

• A user-owned, not-for-profit, cooperative nonprofit

• The process of paying checks and other payments among banks

• a Mutual savings bank

What is a Commercial Bank?

• a federal bank

• a bank with a lot of options to open a checking account

• a state bank with national bank aspirations

• A bank that offers a full range of financial services

The money a person earns during a particular time period

• commission

• income

• tips

• christmas bonus

What is the difference between saving and investing?

• Saving money typically means it is available when we need it and it has a low risk of losing value.

• Both saving and investing are key pieces to one's personal finances.

• The difference between saving and investing is risk.

• Investing typically carries a long-term horizon, such as our children’s college fund or retirement.

When you are buying or selling a home this is an example of this type of investment?

• Monopoly: The game

• Homeownership

• Real Estate

• Acquiring assests

When Interest is not only earned on the principal but it is also on the interest already earned, what is that called?

• monthly interest

• annual interest

• compound interest

• simple interest

 When you divide 72 by the interest rate on the investment you're looking at it will result in the number of years it will take until your investment doubles itself. What rule is that?

• The Rule of 6x8

• The Rule of 72

• The Rule of 84

• The Rule of Investors in 1922

Commodities include products such as....?

• wheat

• cattle

• coal and oil

• natural gas

• gold and silver