Banking - Unit review

What type of Bank acount allows easier access to your money but typically does not may interest?

• Checking

• Savings

• Certificate of deposit (CD)

• Money Order

What type of Bank account offers the highest rate of interest but does not allow you to access the money for a set period of time?

• Checking Account

• Savings Account

• Certificate of Deposit

• Money Order

What type of bank acound is designed for you to keep money for longer periods of time and earns some interested on your deposit?

• Checking Account

• Savings Account

• Certificate of Deposit

• Money Order

Juan saved $1,000 from his summer job cleaning pools. Which of these account types would work best for him if he doesn't need access to the money for a number of years AND wants to earn the highest interest rate?

• Savings account

• Money Market Account

• Certificate of depoisit (CD)

• Checking Account

All of the following statements about bank accounts are true EXCEPT…

• If the bank is FDIC-insured, your money, up to the FDIC limit, is safe even if the bank fails

• Many banks pay interest on the money you deposit into your savings account

• Historically, savings accounts earn higher returns than investments in the stock market

• Money in a checking account is usually easy to access via ATM, debit card or check

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

• Wait until the end of the month and save whatever is left in your checking account

• Save a certain percentage of each paycheck and deposit it directly into a savings account.

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

• Take out a payday loan so you can save before you receive your paycheck.

All of the following are true about prepaid cards EXCEPT…

• Prepaid cards typically include a lot of fees

• Prepaid cards are a useful option for someone who is unbanked to make online purchases

• Prepaid cards are a great way to build credit

• Prepaid cards are usually accepted anywhere that debit and credit cards are accepted

Fill in the blanks with the correct responses.  If you follow the 50-30-20 rule of budgeting, you'll be putting 50% of your monthly income toward _______________, 30% of your monthly income toward _____________, and 20% of your monthly income toward ______________.

• Needs, wants, savings

• Savings, needs, wants

• Needs, savings, wants

• Wants, needs, savings

Which represents the BEST time to start saving for your retirement?

• As soon as you have your first full-time job

• Right after you pay off your student loans

• Once you are debt-free, including paying off all credit cards, auto loans, and your mortgage

• At age 45, so you have exactly 20 years until retirement

Which of the following statements is TRUE?

• The majority of Americans have an adequate emergency fund

• The majority of Americans have sufficient amounts of money saved for retirement

• The majority of Americans have an adequate emergency fund, but do NOT have sufficient amounts of money saved for retirement

• The majority of Americans do NOT have an adequate emergency fund or sufficient amounts of money saved for retirement