Chapter 8 Lesson 3 Your Bank Accounts

What is the primary purpose of a checking account?

• To earn high interest on your savings

• To make spending and managing your money safe and convenient

• To lock your money for a specified period

• To invest in the stock market

Which type of savings account typically offers the highest interest rates but requires you to lock your money for a set period?

• Basic savings account

• Money market account

• Certificate of deposit (CD)

• Checking account

What is the term used to describe how quickly and easily you can access your money in a savings account?

• Interest rate

• Liquidity

• Deposit insurance

• Withdrawal limit

Which type of account is recommended for storing an emergency fund?

• Basic savings account

• Money market account

• Certificate of deposit (CD)

• Checking account

At what age range is it suggested to open a bank account, possibly as a co-owned account?

• 5–10 years

• 13–17 years

• 18–25 years

• 26–35 years

What is a key feature to look for when choosing a bank for a checking account?

• High withdrawal fees

• Free checking services

• Limited ATM access

• High minimum balance requirements

Which type of bank is known for offering potentially better rates and being member-owned?

• Retail bank

• Credit union

• Online bank

• Investment bank

What is the recommended amount for an initial emergency fund according to The First Foundation?

• $100

• $250

• $500

• $1,000

Which of the following is NOT a typical feature of a checking account?

• Debit card access

• High interest rates

• Online banking with bill pay

• Payroll direct deposit

Why is it important to ensure your money is insured when choosing a bank?

• To earn more interest

• To protect your money in case the bank fails

• To avoid withdrawal fees

• To increase liquidity