CFM 2 Review 2

Which of the following terms refer to the total amount an employee makes after all deductions are taken out?

• Gross Pay

• Net Pay

• Payroll

• Allowance

Which of the following statements comparing credit and debit cards is true?

• More businesses accept credit cards than debit cards.

• Credit cards pull money directly from your bank account.

• Debit cards do not provide you with a monthly statement.

• Credit cards are like a loan that you pay back later.

Which of the following transactions will reduce your checking account balance immediately?

• Writing your monthly rent check.

• Using your debit card at the grocery store

• Using your credit card to buy books.

• depositing a check.

Direct deposit refers to your employer sending your pay directly to your...

FDIC Insurance is...

• Optional insurance to keep your bank account safe.

• Insurance that a bank can buy to protect their customer's accounts

• Required insurance you must purchase if you choose to use online banking

• Protection for banks customers up to $250,000, guaranteeing their money is available.

If you opt out of overdraft protection and then spend $11 when you have $10 in your account, what will happen?

• Your bank account will fall negative $1

• Your bank account will be closed

• Your bank will provide you with 1 week to add funds to your account.

• Your bank will decline the transaction.

• Your bank will charge you overdraft fees.

Which of the following is true about compound interest?

• Since compound interest is difficult to calculate, you earn higher profit for figuring it out.

• Compound interest means you have a fund manager compounding your returns without charging a fee.

• Compound interest impacts how much your manager will charge you in fees.

• Compound interest allows you to earn interest on your savings and but also on the interested you've earned.

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

• Waiting until the end of the month and saving whatever is left over.

• Depositing a predetermined amount into a separate savings account.

• Cover all your wants and needs and save whatever is left over.

• Take out a loan to help grow your savings account.

Which of these statements is false.

• Savings accounts yield higher returns than the stock market.

• Money in a checking account is easy to access with an ATM card.

• If the bank is FDIC insured your money is safe even if the bank fails.

• Many banks will pay interest on money you put in your savings account.

Which of these have the lowest expected interest rate?

• 5 year CD

• 10 year CD

• Savings Account