Personal Financial Literacy: Banking Saving and Investing

What does the term "interest rate" refer to?

• The amount of money in a savings account

• The percentage charged for a loan or the percentage paid on a savings account

• The number of bank branches

• The total amount of a loan

Who are savers?

• People who deposit money into the bank

• People who take loans from a bank

• Bank employees

• Government officials

Who are borrowers?

• People who deposit money into the bank

• People who get loans from a bank

• Bank managers

• Investors

What does "fully banked" mean?

• A person with no bank account

• A person who has some form of checking, savings, or money market account

• A person who only uses cash

• A person who works at a bank

What does "underbanked" mean?

• A person with no financial services

• A person who has some form of checking, savings, or money market account but uses alternative financial services

• A person who only uses digital banks

• A person who has multiple bank accounts

What is a digital bank?

• A bank that has physical locations

• A bank that delivers products and services remotely through electronic channels

• A bank that only offers savings accounts

• A bank that only serves government employees

What is a credit union?

• A for-profit bank

• A nonprofit depository institution owned by members

• A type of loan

• A government agency

What is one potential issue with keeping money in a mattress?

• It earns interest

• It is easily accessible

• It is not secure and does not earn interest

• It is insured by the government

Which of the following is an example of an alternative financial service?

• Savings account

• Check cashing service

• Credit union

• Digital bank

What is the main function of a bank?

• To provide entertainment

• To make loans and store deposits

• To sell products

• To create laws