Banking Unit Review

What is the main purpose of a Checking Account?

• To earn high interest

• To invest in stocks

• To store and access money

• To apply for credit cards

Which of the following is true about Savings Accounts?

• They typically have higher interest

• You can only access money once a year

• They're used only for retirement

• They require a credit check

What is overdraft protection?

• A policy that closes your account after a negative balance

• A feature that prevents all purchases if funds are low

• A service that covers transactions when you don't have funds (might have a fee)

• A type of savings account

Which of the following financial institutions is nonprofit and member-owned?

• Commercial Bank

• Investment Firm

• Payday Lender

• Credit Union

What does the FDIC insure?

• Stock market investments

• Cryptocurrency accounts

• Bank deposits up to $250K

• Home values

Which type of account is best for making frequent transactions like paying bills or using a debit card?

• Certificate of Deposit

• Checking Account

• Savings Account

• Retirement Account

A routing number is:

• A unique number that identifies a bank

• Your account number

• A loan number

• A type of fee

What is the difference between a debit card and a credit card?

• Debit cards let you borrow money from the bank

• Credit cards don't impact your credit score

• Debit cards use your own funds

• Debit cards can only be used online

What is a bank statement?

• A legal notice of bank fraud

• A printed check

• A summary of your account activity

• A list of stock prices

What is the best reason to reconcile your bank statement?

• To cancel your account

• To make sure your records match

• To increase your interest rate

• To avoid using ATMs