Module 3 - Financial Exchanges & Institutions

Emma has $2,000 saved from her part-time job. She wants to invest the money for a few years and earn the highest interest rate possible without needing access to the funds. Which account type would be the most suitable for her?

• Savings account

• Money Market account

• Checking account

• Certificate of Deposit

What is a recommended approach to saving money?

• Rely on credit cards for emergencies and save money later

• Set aside a fixed amount from each paycheck to deposit into a separate savings account

• Wait for a financial windfall, like a tax refund or bonus, to start saving

• Borrow money from friends and family when emergencies arise

Which of the following statements about savings accounts is NOT true?

• Savings accounts typically have a lower interest rate than other investment options

• Savings accounts are a safe place to store money for short-term needs

• Savings accounts usually have a higher return on investment than the stock market

• Savings accounts are insured by the FDIC up to a certain limit

What are the advantages of an online savings account over a traditional bank savings account?

• Online savings accounts usually offer higher interest rates

• Online savings accounts are FDIC insured to a higher limit

• Online savings accounts are more secure against identity theft

• Online savings accounts are specifically designed for individuals under 25

Which statement best describes a savings account?

• Offers a convenient way to pay bills and access cash from an ATM

• Pays you interest on money you have put away for later

• Is automatically debited when you use a debit card

• Typically allows an unlimited number of transactions per month

You are at a restaurant and decide to pay for your meal using your debit card. How is this transaction processed?

• The cost is covered by your credit card company

• The amount is directly deducted from your checking account

• Your credit card company provides a cash advance to cover the cost

• The amount is directly deducted from your savings account

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

• Your bank will waive all overdraft fees

• You earn a higher interest rate for transactions done online

• You can request transfers and pay bills without visiting the bank branch

• You can only shop online if your bank account has online banking features

When opening a new checking account, you opt for overdraft protection. You currently have $20 in your account and make the following transactions: a $25 purchase at a grocery store, a $10 coffee, and a $30 dinner. What is the most likely outcome of these transactions?

• The bank will close your account due to insufficient funds

• You will be charged an overdraft fee for one or more transactions and will need to repay the bank for the overdrawn amount

• Since you have overdraft protection, the bank will not allow you to overdraw your account, and your debit card will be declined

• The bank will give you a grace period of a few days to add funds to your account to cover the overdraft, and no fees will be charged

Tags

CCSS.7.NS.A.1C

What is the primary purpose of online bill pay?

• To enable automatic electronic payments from your bank account

• To facilitate direct deposit of your paycheck into your bank account

• To allow you to use your debit card for cash withdrawals

• To provide early access to your paycheck through your debit card

How often do customers typically receive a bank statement for their checking account?

• Daily

• Weekly

• Monthly

• Annually