Banking Unit Test Review

Which of the following is NOT a way to put money into your checking account?

• Make a purchase using a debit card

• Make a cash deposit at your bank

• Deposit a check at your bank

• Use an ATM to deposit your money

What is the maximum amount of money that is insured by the CDIC per person, per account?

• $100,000

• $150,000

• $200,000

• $250,000

What potential advantage does a checking account have over a savings account regarding transactions?

• It earns more interest

• It has no transaction limits

• It provides better insurance coverage

• It requires less initial deposit

Which feature of checking accounts helps protect consumers when paying bills?

• Automatic bill pay options

• Paper trail of all transactions

• Digital wallet integration

• ATM access

Which of the following is a primary feature of a checking account compared to a savings account?

• Higher interest rates

• Limited number of transactions per month

• Easy access to funds for daily transactions

• Designed primarily for long-term savings

What is compound interest?

• Interest paid only on the original amount deposited

• Interest paid on both the original amount and previously earned interest

• A fee charged by banks for savings accounts

• Interest that decreases over time

What is the 50/30/20 saving rule?

• Save 50% of your income, spend 30% on needs, and 20% on wants

• Save 20% of your income, spend 50% on needs, and 30% on wants

• Save 30% of your income, spend 50% on needs, and 20% on wants

• Save 50% of your income, spend 20% on needs, and 30% on wants

What does it mean to "pay yourself first"?

• To spend money on yourself before paying bills

• To set aside money for savings before spending on other things

• To always use cash instead of credit cards

• To avoid paying taxes

Why is it important to review your bank statements regularly?

• To memorize all your transactions

• To practice your math skills

• To catch any errors or unauthorized transactions

• Because the bank requires it

What is an emergency fund?

• Money set aside for unexpected expenses

• A loan from the bank for emergencies

• A government program for natural disasters

• A type of investment account