Chapter 7 & 8 Review

Having the bank deduct a certain amount from your checking account each month to pay a bill is __________.

• a fee.
• automatic withdrawal.
• a register.
• none of these.

The FDIC insures bank deposits in most banks up to a maximum of

• 175,000
• 100,000
• 150,000
• 250,000

Banks provide a place for you to keep your non-cash items (such as precious heirlooms and jewelry), which is also known as

• safe deposit boxes
• savings accounts
• deposit slips
• none of these

Currency is _______ money used for financial transactions.

• withdrawal
• a check
• interest
• paper/coin

In order to make profit, when banks loan money they charge

• more interest than what they pay on amounts in savings accounts.
• less interest than what they pay on amounts in savings accounts.
• the same interest that what they pay on savings accounts.
• nothing.

The practice of trading current spending for the ability to spend in the future is known as 

• principal.

• interest.

• saving.

• investing.

Pick THREE ways in which people benefit from having saved.

• save for the unexpected (whammies)

• save for flexibility

• can't buy what you want when you want

• achieving your goals

• banks make profit

Which of the following is NOT a savings strategy?

• Automatic saving

• Save by the numbers (saving a percentage of your income like 10%)

• Investing in the stock market

• Pay yourself first

A financial institution that is owned by its depositors (most have been restructured into commercial banks) is a ________________.

• Savings bank

• Dividend

• Credit union

• Savings account

A financial institution that provides banking services to its members, who are people who share a common bond, such as a certain profession, church group, or labor union is a _______________.

• Savings bank

• Building and Loan

• Credit Union

• Online Bank