Banking Basics/Salary Terms

You are developing a savings plan and using short-, medium-, and long-term goals to motivate you. Which represents possible goals from short-term to long-term? Save for…

• Retirement, a house down payment, college tuition
• A new cell phone, college tuition, a house down payment
• A new cell phone, dinner with friends this weekend, a new bike
• Retirement, college tuition, a vacation

You are at the checkout counter at the local supermarket and use your debit card to pay for your groceries. Where does the money for this purchase come from?

• Your credit card company covers the cost
• It is deducted directly from your checking account
• Your credit card company provides you with a cash advance to cover the cost
• It is deducted directly from your savings account

Which of the following transactions will REDUCE your checking account balance immediately?

• Writing your monthly rent check which you will mail tomorrow
• Using your debit card to pay for groceries at the supermarket
• Using your credit card to pay for your school books
• Depositing a check at a local bank branch

A credit union is for profit.

• True
• False

All of the following are benefits of using a checking account EXCEPT…

• Multiple options for using funds to make payments
• Checking accounts act as a good savings vehicle
• Access to cash via ATMs
• Your money is protected by FDIC insurance

Alex wants to become an electrician. He works for a couple of years learning the trade from a professions. Alex is a (an) __?__

• Intern
• Apprentice
• Hourly worker
• Professional

You work at Harris Teeter while you are in high school. This is considered to be a __?__

• Career
• Internship
• Job
• Apprenticeship

Which of the following is NOT an example of a savings account?

• Money Market
• High Yield
• Debit Card
• CD

Which of the following is NOT a characteristic of a a debit card?

• Is a loan from a bank
• Is convenient
• Comes straight from your checking account
• Can be used at an ATM

What type of savings account has a penalty for early withdrawal?

• Traditional savings
• CD
• High Yield Savings
• Money Market