Unit 2 Review: Banking

You got your first $500 paycheck. If you are saving 10% of your paycheck, how much should you be saving each pay?

• $5

• $50

• $100

• $10

What is the term for the money that a financial institution gives to you as a thank you for entrusting your money with them?

• Interest

• Principal

• Equity

• Dividends

What is the term for a list telling you how much of your payment goes towards the principal and how much goes towards the interest for every single payment?

• Appraised

• Annual percentage rate (APR)

• Amortization schedule

• Liquid

What is the term for a share of the profit of the company as a thank you for investing in them?

• Dividends

• Interest

• Principal

• Equity

Match the definition with the correct term.

• 
  

  bank

• 
  

  A person needs another person to sign for a loan.

• 
  

  credit union

• 
  

  This is a non-profit organization that is owned by its members.

• 
  

  cosigner

• 
  

  This can be added to an account in case more money is taken from an account than is in the account.

• 
  

  overdraft protection

• 
  

  This is a for-profit organization that is owned by the investors.

Is the scenario below a situation where you opted-in or opted-out of overdraft protection when you opened your checking account? At the grocery store, you have a bill of $128, but you only have $100 in your account. Not realizing that your account was low, you attempt to make the purchase. When you swipe your debit card, the purchase is declined.

• Neither

• Opted-out

• Opted-in

• Not enough information to determine

Match the type of account with the description.

• money market account

• 
  

  This type of account is where money is put to be used.

• savings account

• 
  

  This type of account generally has a minimum balance, but typically has higher interest rates. You have the option of withdrawals, but they are limited.

• checking account

• This type of account has a mature date and higher interest rates. Money is placed here and left alone until the mature date.

• certificate of deposit

• This type of account is where money is typically placed and left alone. It also has a limited amount of withdrawals.

Identify the items as secured or unsecured loans.

Groups:

(a) Secured Loans

,

(b) Unsecured Loans

• student loan

• personal loan

• credit card

• house

• car

• boat

You are getting a personal loan for $15,250 at 6.3% APR that you are going to pay back over 9 years. What is the total paid?

You may use the calculator below to help you determine this answer.

https://www.amortization-calc.com/loan-calculator/

• 
  $185

• 
  $19,792

• $20,019

• 
  $4,769

A bank ________ is an organization tool that tracks banking transactions as money is used in an account.