EPF - W!SE Banking

You write a check for $100, but your account only has $50. What does overdraft protection do?

• Refuses the transaction

• Allows the bank to cover the difference using a linked account

• Charges you an additional fee for insufficient funds

• Transfers money from a credit card

If you invest $1,000 at an annual interest rate of 6%, approximately how long will it take for your investment to double?

• 12 years

• 18 years

• 24 years

• 72 years

If you were given $100 today or $100 a year from now, what would the time value of money suggest?

• The $100 today is worth more

• The $100 tomorrow is worth more

• The value of both is the same

• The $100 tomorrow will grow faster

You want to earn more interest on your savings but don’t need access to the money for a few years. What’s the best option?

• Keep the money in a checking account

• Open a Certificate of Deposit

• Invest in the stock market

• Keep the money in a piggy bank

Which of the following is covered by FDIC insurance?

• A loan from a bank

• Your bank account

• An investment in the stock market

• A mortgage loan

If you deposit $5,000 into a federally insured credit union, what happens if the credit union fails?

• You could lose some or all of your deposit

• The NCUA insures your deposit up to $250,000

• Your money is immediately refunded by the NCUA

• You will receive your money from the federal government

While traveling abroad, you lose your cash. Which option is the safest way to replace the lost funds?

• Use a credit card

• Use traveler’s checks

• Wire money to yourself

• Take out a payday loan

You need quick cash before your next paycheck but don’t have a bank account. What should you avoid?

• Payday lenders

• Using a credit card

• Borrowing from family

• Using a loan from a bank

You borrow money from a friend and agree to pay them back in a few months. What would best protect both parties?

• Sign a promissory note

• Write an informal agreement on a piece of paper

• Make a verbal agreement

• Keep a record of the transaction in a notebook

You apply for a loan and offer your car as security in case you can’t pay it back. What type of loan is this?

• Unsecured loan

• Collateralized loan

• Personal loan

• Payday loan