PF Ch 5 Checking Review

Paying bills online is generally considered slower and riskier than writing checks.

• True
• False

Which of the following accounts does NOT earn interest?

• Checking Account

• Savings Account

• CD

• None of the above

What’s the #1 reason to keep your money in an insured financial institution?

• You’ll have access to seed accounts.

• You can start pillar saving.

• Your transactions won’t be limited.

• Your money will be safe.

How can you access money in a checking account?

• Checks

• Debit Card

• Withdrawals

• All of the above

A savings account has...

• Variable interest, meaning the rate can change at any time

• Variable interest, meaning chunks of money in the account have different rates depending on the time of year they were deposited

• Set interest, meaning the rate is locked in once you open the account

• Set interest, meaning the rate only changes if you submit a request to change it

What does APY stand for?

• Average Paying Year

• Account Permitted for Youth

• Annual Percentage Yield

• Automatic Payout Y-Axis

When a check is returned to the payee’s bank due to insufficient funds, the check is said to have

• been postdated.
• been canceled.
• bounced.
• floated.

If you want to earn as much interest as possible, where is usually the best place to put your money?

• A savings account

• A CD

• A checking account

• A lender account

When you open a checking account, most banks will require you to have an initial deposit of at least

• $1,000.
• $500.
• $250.
• $50.

When something earns compound interest, it earns interest on...

• Only the original amount deposited.

• Only money deposited in the last year

• The original amount deposited + any previously earned interest.

• The money in the account + a bonus $100 for each $1,000 deposit.