FSV VOCAB 07: Banking

Noah recently opened a new bank account and received his first bank statement. What is a bank statement?

• A summary of all monthly account transactions provided in paper or digital form.

• A document detailing yearly financial transactions.

• A weekly report of account balances.

• A notification of account overdrafts.

Brynn just started her first job and needs a way to manage her daily financial transactions. What is the purpose of a Checking Account for Brynn?

• To invest money for long-term growth.

• To make cash withdrawals, deposits, purchases, and pay everyday expenses and bills.

• To save money with high interest rates.

• To borrow funds for large purchases.

Sydney is considering opening a new bank account and is intrigued by a CD (Certificate of Deposit). What distinguishes a CD from other types of bank accounts?

• It allows for frequent withdrawals.

• It is used primarily for daily transactions.

• It offers higher interest rates but requires money to be deposited for a fixed period.

• It provides loans and credit facilities.

What is Compound Interest?

• Interest calculated on the initial deposit only.

• A fixed interest rate that does not change over time.

• Interest paid on both the initial principal and previously earned interest.

• A reduction in interest due to late payments.

What is simple interest calculated on?

• Total amount

• Principal only

• Interest rate

• Duration of the loan

Where is simple interest typically applied?

• Stock investments

• Real estate purchases

• Loans and savings accounts

• Business equity

Riley recently opened an account at a local bank that allows for withdrawals and deposits. It's great for paying her monthly bills and keeping track of her spending. 

• Savings Account

• Checking Account

• Credit Card Account

• Private

Which interest-bearing account is best for long-term savings?

• Savings Account

• Checking Account

• Certificate of Deposit

• Credit card

Match the account types

• Higher interest and greater restrictions

• Savings Account

• Shared by multiple people.

• Money Market

• Lower interest and limited transactions.

• Joint Account

Organize these options into the right categories

Groups:

(a) Debit Card

,

(b) Credit Card

,

(c) Both Credit and Debit Cards

,

(d) Bill Pay

• Borrowed Money
• Money must be paid back plus interest
• Scheduled money transfer for recurring bills
• Allows you to pay for goods and services
• Get cash from ATM
• Deducts money directly from checking account