WISE Review: Cost of Money & Banking

What is the Rule of 72 used for in finance?

• To calculate the time it takes to double money at a given interest rate

• To determine the cost of borrowing

• To assess the impact of interest rates increasing

• To evaluate the advantage of earning interest on savings

During a class discussion, Priya asked which institution plays a role in influencing interest rates and stimulating the economy?

• The Federal Reserve

• The World Bank

• The International Monetary Fund

• The United Nations

Aria is considering starting a savings account at a young age. What is one advantage she might experience by doing so?

• Increased compound interest over time

• Immediate access to funds

• Higher fees on savings accounts

• Reduced need for identification

Hannah wants to open a bank account. What is required for her to do so?

• Valid photo ID and proof of identity

• Proof of citizenship only

• Social Security card only

• No identification needed

What is a potential feature of a regular checking account?

• Potential fees

• Guaranteed interest

• No minimum balance requirement

• Unlimited withdrawals

What is a reason to avoid writing checks made payable to "Cash"?

• It is more secure.

• It is easier to track.

• It can be cashed by anyone.

• It incurs a fee.

What is the purpose of a stop payment order?

• To cancel a check before it is cashed.

• To endorse a check.

• To deposit a check.

• To write a new check.

Evelyn lost her debit card but reported it to the bank within 2 business days. What is the liability limit for her lost debit card?

• $25

• $50

• $100

• $200

What is a cashier's check?

• A check guaranteed by the bank's own funds.

• A personal check.

• A check that can be easily canceled.

• A check that incurs a high fee.

Aria wants to save money efficiently using her bank's mobile app. What is a feature of online banking and electronic funds transfer via a mobile app that can help her?

• Manual transfer from checking to savings.

• Automatic transfer from checking to savings.

• Transfer only during business hours.

• Transfer with a fee.