ML FBLA Financial Literacy - Savings and Checking Accounts

What is the main purpose of a savings account?

• To earn interest on your money

• To write checks

• To make payments

• To store money for short-term use

What is the purpose of a checking account?

• To save money for the future

• To store large amounts of cash

• To make withdrawals and deposits easily

• To earn high interest

What does it mean when an account earns interest?

• The bank charges a fee for using the account

• The money in the account grows over time

• You have to pay interest to the bank

• You are required to make monthly payments

What is a check?

• A paper document used to transfer money from one person to another

• A type of credit card

• A way to deposit money into an account

• A tool used to calculate interest

What is a debit card used for?

• To withdraw money from an ATM or make purchases directly from your checking account

• To transfer money between bank accounts

• To store money like a savings account

• To earn interest on deposits

Which of the following is typically the first step in opening a checking account?

• Depositing money

• Providing identification and personal information

• Signing checks

• Receiving an ATM card

What is a deposit?

• A check written to someone else

• Money put into a bank account

• A fee charged by the bank

• A way to earn interest

What is a withdrawal?

• Adding money to an account

• Taking money out of an account

• A fee charged by the bank

• A loan from the bank

What is a bank statement?

• A document showing the balance and transactions of an account

• A report showing how much interest you have earned

• A list of all your bank’s services

• A form for withdrawing money

What is an ATM?

• A type of credit card

• An automated machine used for withdrawing money from a bank account

• A bank that offers high interest rates

• A method to transfer funds between accounts