Finance Practice

When it comes to personal savings, what does the acronym PYF stand for?

• Prepare Your Future

• Pay Your Friends

• Pay Yourself First

• Prepay Your Finances

An example of a financial institution is:

• A department store

• A bank

• A school

• An ATM machine

Who uses financial institutions?

• Adults

• College graduates

• Almost everyone who maintains a savings or checking account, uses debit or credit cards, or needs a loan

• Account holders with lots of cash

What is online banking?

• A method of depositing cash at an ATM only.
• A service that allows customers to visit their bank in person.
• A way to send physical mail to the bank for transactions.
• An electronic way to view account activity and pay bills via the Internet and an institution’s website.

Identify the incorrect statement.

• A debit card allows for an immediate electronic transfer of money from a cardholder’s savings or checking account.

• A debit card is essentially a paper check but doesn’t require the processing time a check does.

• A debit card is handy in an emergency when you don’t have the money to spend.

• A debit card is a pay-now payment type with no grace period for payments.

To keep your account safe, create a strong password when banking online. Pick three additional safety tips when banking online.

• Keep your user name and password private

• Don’t store your account number or PIN on your mobile device

• Log off my account

• Use the same password for all accounts

True or False: A bank is a not-for-profit financial institution.

• True

• False

True or False: You order your favorite foot-long sandwich with chips and a drink using your debit card. The total comes to $5.68. Your online statement shows a charge of $40.68. The extra amount is an overdraft fee.

• True

• False

True or False: A credit card provides preapproved credit.

• True

• False

True or False: Internet banking means using a bank branch to make deposits and withdrawals.

• True

• False