Banking

You have $30 in your acct. How can a bank reorder 4 checks written today to MAXIMIZE your fees?

• Process the largest check first

• Process the smallest check first

• Process the checks in random order

• Process the checks in alphabetical order

People who are unbanked are most likely to...

• Have a high credit score

• Have a low income

• Have a college degree

• Have a mortgage

Overdraft protection...

• Allows you to withdraw more money than you have in your account

• Protects your account from unauthorized transactions

• Helps you save money for emergencies

• Provides insurance for your deposits

Which of the following is a common feature of a student checking account?

• Unlimited check writing

• High interest rates on deposits

• Low or no minimum balance requirement

• High monthly maintenance fees

Which of the following is TRUE about banks and credit unions?

• Banks are for-profit institutions, while credit unions are non-profit

• Banks offer higher interest rates on savings accounts than credit unions

• Credit unions are insured by the FDIC, while banks are not

• Banks are owned by their customers, while credit unions are owned by shareholders

How is compound interest different than simple interest?

• Compound interest is calculated on the initial amount only

• Compound interest is calculated more frequently

• Simple interest is calculated more frequently

• Simple interest is calculated on the initial amount only

Which is NOT a typical goal for a savings account?

• Saving for retirement

• Saving for a down payment on a house

• Saving for a vacation

• Saving for a new car

What is a common feature of a certificate of deposit (CD)?

• Variable interest rate

• Unlimited withdrawals

• Fixed interest rate

• High liquidity

Which of the following is NOT required to open a checking account?

• Proof of identity

• Proof of address

• Social security number

• Minimum age requirement

Why is understanding a bank's fees particularly important for students or young adults?

• They are more likely to have a low income

• They are more likely to have a high credit score

• They are more likely to have a mortgage

• They are more likely to have a college degree