W!SE Banking (URHS) #1

Choose the best answer:

Why deposit money at a bank or credit union instead of hiding it at home?

• 
  It is insured

• It is more convenient

What is the purpose of a savings account?

• To grow your $ for

  long-term wealth

• 
  To keep $ safe for a down payment or an emergency fund

• To borrow $ to

  purchase items

What is the rule for keeping an Emergency Fund?

• 
  You should have

  2 months of your total salary in an emergency fund

• 
  You should have

  3-6 months of your living expenses in an emergency fund

• You can use credit as an emergency fund

Savings accounts are for transactional banking

• 
  True

• False

Lending institutions with lowest interest rates include...

• 
  Banks and Credit Unions

• 
  Finance Companies

• Pawn Shops

• Payday Loan Companies

The central banking system in the United States.

• 
  Federal Reserve

• 
  The Mint

• The U.S. Treasury

• First National Bank of the U.S.

What is an ATM used for?

• 
  Withdraw money

• 
  Order checks

• 
  Balance your checkbook

• 
  Write checks

If you are going to use an ATM,

you better know your...

• 
  Home address

• Answers to security question

• 
  Your Personal Identification Number (PIN)

What is a CD in personal finance?

• 
  A type of checking account

• 
  A savings account where you lock in your $ for a term to earn a higher interest rate

• 
  A savings account that allows you to withdraw your $ at any time

Which is NOT an online banking service?

• 
  Withdraw cash

• 
  Deposit checks

• 
  Transfer funds

• 
  Order checks