Personal Finance EMPA Review

This type of bank operates their branches and makes their wide variety of services available across the country

• National Bank

• Regional Bank

• Online Bank

• Credit Union

This type of bank operates with no brick and mortar branches and is typically able to offer higher rates on it's products

• National Bank
• Regional Bank
• Online Bank
• Credit Union

What kind of fee could you be charged when you spend more money from your checking account than you have.

• Monthly Maintenance Fee
• Low Balance Fee
• Overdraft Fee
• Late Fee

What is the main purpose of a checking account and what are some features?

• Used for long-term savings, high interest rates, limited withdrawals
• Used for everyday transactions, easy access, typically no interest
• Used for short term savings, earns interest, strict withdrawal limits
• Investment growth, periodic withdrawals, tiered interest rates

What is the main purpose of a savings account and what are some features?

• Used for long-term savings, high interest rates, limited withdrawals
• Used for everyday transactions, easy access, typically no interest
• Used for short term savings, earns interest, strict withdrawal limits
• Investment growth, periodic withdrawals, tiered interest rates

What are the components of a Certificate of Deposit (CD)?

• Short-term loan, flexible interest rates, unlimited withdrawals
• Variable-term deposit, variable interest rate, unlimited withdrawals
• Open-ended deposit, variable interest rate, no withdrawal limits
• Fixed-term deposit, fixed interest rate, limited withdrawals

What are the components of a Money Market Account (MMA)?

• Flexible interest rates, check-writing privileges, tiered interest rates
• High-interest savings, strict withdrawal limits
• Short-term loan, flexible interest rates, unlimited withdrawals
• Fixed-term deposit, fixed interest rate, limited withdrawals

What is compound interest?

• Interest calculated only on the initial principal
• Interest calculated on both the initial principal and the accumulated interest
• A fixed interest rate over time
• Interest compounded quarterly for savings accounts

What does APY mean? How does this affect your monthly interest?

• Annual Payment Yield; it doesn't impact monthly interest
• Annual Profitable Yield; it affects quarterly interest
• Annual Percentage Yield; it is used to calculate your monthly interest received

• Average Percentage Yield; it has no effect on monthly interest

What is the FDIC? What does it do for you as a consumer?

• Federal Deposit Insurance Corporation; protects your deposits up to a certain limit

• Financial Data and Information Center; regulates interest rates

• Federal Depository Insurance Committee; guarantees high-interest rates

• Financial Documentation and Information Control; audits banks' financial records