Terminology Review 9-Banking

What is the 50-20-30 Rule in personal finance?

• 50% savings, 20% debt repayment, 30% necessities

• 50% necessities, 20% savings and debt repayment, 30% flexible spending

• 50% flexible spending, 20% necessities, 30% savings

• 50% debt repayment, 20% flexible spending, 30% necessities

What does ATM stand for in banking terms?

• Automated Transaction Machine

• Automatic Teller Machine

• Account Transfer Machine

• Automated Transfer Machine

Tags

CCSS.RI.11-12.4

CCSS.RI.7.4

CCSS.RI.8.4

CCSS.RI.9-10.4

CCSS.RI.9-10.4

What is a Certificate Of Deposit (CD)?

• A bank account with a high interest rate

• A bank product that earns interest on a lump-sum deposit for a predetermined period

• A type of savings account with no interest

• A checking account with a fixed interest rate

What is a Canceled Check?

• A check that has been voided by the account holder

• A check that has been paid or cleared by the bank

• A check that is still pending in the bank

• A check that has been lost or stolen

What is a Checkbook used for?

• To hold cash and coins

• To store credit cards and debit cards

• To hold a check register, checks, deposit slips, and other records

• To manage online banking transactions

What is compound interest?

• A sum of money deducted from your account

• Reinvesting earned interest back into the principal to allow money to grow exponentially over time

• Inflation caused by an increase in production costs

• A form you fill out to credit money to your account

What is cost-push inflation?

• Inflation caused by an increase in demand

• A sum of money deposited into an account

• Inflation caused by an increase in production costs, but demand is the same

• An application that runs on mobile devices

What is a credit card?

• A card that allows the holder to make purchases without cash by borrowing money

• A card that is directly connected to your checking account

• A form you fill out to credit money to your account

• An application that runs on mobile devices

What is a debit card?

• A card that allows the holder to make purchases without cash by borrowing money

• A card that is directly connected to your checking account; it enables you to conduct ATM transactions and to make purchases instead of using cash or writing a check

• A sum of money deposited into an account

• Inflation caused by an increase in demand

What is demand-pull inflation?

• Inflation caused by an increase in production costs

• Inflation caused by an increase in demand, but supply is the same

• A sum of money deducted from your account

• An application that runs on mobile devices