Banking Unit

Juan saved $1,000 from his summer job cleaning pools. Which of these account types would work best for him if he doesn't need access to the money for a number of years AND wants to earn the highest interest rate?

• Regular savings account

• Money Market account

• Checking account

• Certificate of Deposit

Which of the following is an effective strategy for personal saving?

• Wait until the end of the month & save what is left in your checking account.

• Save a certain percentage of each paycheck & deposit it directly into savings.

• Cover all of your wants & needs and save what is leftover.

• Take out a payday loan so you can save before you receive your paycheck.

A person-to-person payment would best be used in which of these situations?

• To give a tip to the waitress at dinner.

• To buy some school supplies & baseball equipment while shopping online.

• To repay your uncle who covered the cost of your first semester textbooks.

• To give a donation to someone soliciting contributions outside the grocery store.

Each of these is a way to access money in your checking account EXCEPT...

• Use your debit card to pay for groceries at a Point-of-Sale (POS) terminal

• Swipe a prepaid card to pay for your food purchase

• Write a check to pay the rent on your apartment

• Take out cash using your debit card at an ATM machine

Which list includes the most important factors to consider when opening a savings account?

• The fees, the interest rates, and the minimum deposit to open the account.

• The fees, the interest rates, and the bank's brand recognition.

• The fees, which bank your friend uses, and the minimum deposit to open the account.

• The fees, which bank your friend uses, and the bank's brand recognition.

Joelle wants to have an emergency fund to cover 6 months of her expenses. Her monthly gross pay is $4,000 and her monthly expenses are $2,000. If she plans to save 10% of her gross pay each month, how long will it take her to build her emergency fund?

• 3 months

• 9 months

• 24 months

• 30 months

People who are unbanked are most likely to...

• Use a mobile banking app

• Receive a monthly statement

• Deposit their checks at the ATM

• Incur lots of fees at Check Cashers to access their money

All of the following statements about bank accounts are true EXCEPT...

• money in a checking account is usually easy to access via ATM, debit card, or check

• historically, savings accounts earn higher returns than investments in the stock market

• many banks pay interest on the money you deposit into your savings account

• if the bank account is FDIC-insured, your money is safe even if the bank fails

Which is NOT a typical goal for a savings account?

• to create an emergency fund

• to pay for higher education

• to save for a new car

• to buy groceries for this week

All of the following are true about prepaid cards EXCEPT...

• prepaid cards are a useful option for someone who is unbanked to make online purchases

• prepaid cards typically include a lot of fees

• prepaid cards are a great way to build credit

• prepaid cards are usually accepted anywhere that debit cards & credit cards are accepted