PF Unit 4 Lesson 3

What type of account typically earns interest on the balance?

• Checking account

• Savings account

• Credit account

• Loan account

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DOK Level 1: Recall

Which type of account usually does not earn interest?

• Savings account

• Checking account

• Investment account

• Retirement account

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DOK Level 1: Recall

What is a demand deposit account?

• An account that requires a fixed deposit term

• An account where funds can be withdrawn at any time

• An account that charges a fee for withdrawals

• An account that does not allow withdrawals

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DOK Level 1: Recall

Explain why it might be important to maintain a minimum balance in some accounts.

• To avoid overdraft fees

• To earn higher interest rates

• To avoid monthly maintenance fees

• To qualify for a loan

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DOK Level 2: Skill/Concept

Compare the benefits of a savings account versus a checking account.

• Savings accounts offer higher interest rates, while checking accounts provide easier access to funds.

• Checking accounts offer higher interest rates, while savings accounts provide easier access to funds.

• Both accounts offer the same benefits.

• Neither account offers any benefits.

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DOK Level 2: Skill/Concept

Why might someone choose a checking account over a savings account for daily transactions?

• Checking accounts typically have higher interest rates.

• Checking accounts allow for easier access to funds for daily use.

• Savings accounts have more fees.

• Savings accounts are not available at most banks.

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DOK Level 2: Skill/Concept

Analyze the potential consequences of not maintaining a minimum balance in a savings account.

• The account may be closed automatically.

• The account holder may incur fees.

• The interest rate may increase.

• The account may convert to a checking account.

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DOK Level 3: Strategic Thinking

Evaluate the impact of choosing the wrong type of account for your financial needs.

• It could lead to better financial management.

• It could result in a loss of opportunity and ability.

• It could increase your savings.

• It could decrease your spending.

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DOK Level 3: Strategic Thinking

What reasoning might someone use to decide between a savings account and an investment account?

• Savings accounts are riskier than investment accounts.

• Investment accounts typically offer higher returns but come with higher risk.

• Savings accounts offer higher returns with no risk.

• Investment accounts are more accessible for daily transactions.

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DOK Level 3: Strategic Thinking

Identify a scenario where a checking account would be more beneficial than a savings account.

• When planning for long-term savings

• When needing to make frequent transactions

• When wanting to earn high interest

• When avoiding all fees

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DOK Level 1: Recall