Banking

Isla and Noah are discussing their finances. Isla says, 'Saving accounts are like treasure chests because...'

• Saving accounts have higher interest rates

• Saving accounts have more fees

• Saving accounts have unlimited transactions

• Saving accounts have overdraft protection

Picture this: Abigail strolls into her favorite coffee shop, craving her usual caffeine fix. Her total comes to $15, but alas, she only has $10 in her account. What magical power does overdraft protection grant her?

• Allows her to complete the purchase even though she has less money in her account

• Protects her account from unauthorized coffee purchases

• Helps her save money for future coffee emergencies

• Provides insurance for her coffee purchase deposits

Imagine Mia and her friend Ava are on a treasure hunt, and they find a chest with $1,000 in it. How does the sneaky pirate called 'Inflation' impact the treasure over time?

• It increases the value of their treasure

• It decreases the value of their treasure

• It has no impact on the value of their treasure

• It depends on the interest rate

Abigail and Zoe are opening their first checking accounts. Which of the following is NOT something they need to bring along?

• Proof of identity

• Proof of address

• Social security number

• Minimum age requirement

Zoe is on a mission to secure her son Mason's future education. She's exploring different savings accounts like a treasure hunt! Which type of account is the ultimate treasure for college savings?

• A retirement savings account

• A health savings account

• A college savings account

• A tax-free savings account

Imagine James has $30 in his bank account. Today, he wrote 4 checks for various expenses, including a gift for Luna and a pizza party with Arjun. How can the bank reorder these checks to MAXIMIZE the fees charged to James?

• Process the largest check first

• Process the smallest check first

• Process the checks in random order

• Process the checks in alphabetical order of the payee's name

Imagine Grace and her friend Abigail are planning their monthly budgets. How should Grace apply the 50-20-30 rule to her income to ensure she can enjoy life while saving wisely?

• 50% for needs, 20% for savings, 30% for wants

• 50% for savings, 20% for needs, 30% for wants

• 50% for wants, 20% for savings, 30% for needs

• 50% for needs, 20% for wants, 30% for savings

Oh no! Noah went on a shopping spree and spent more than what was in his checking account. Can you guess the typical overdraft fee his bank might charge him?

• $10

• $25

• $50

• $100

Imagine Noah and Liam each deposit $1,000 in their respective savings accounts. Noah's account earns compound interest, while Liam's earns simple interest. How does the interest Noah earns differ from the interest Liam earns?

• Compound interest is calculated on the initial amount only

• Compound interest is calculated more frequently

• Simple interest is calculated more frequently

• Simple interest is calculated on the initial amount only

Imagine Avery and Michael are having a lively debate about financial institutions. Avery claims that one fascinating difference between banks and credit unions is:

• Banks are for-profit institutions, while credit unions are non-profit

• Banks offer higher interest rates on savings accounts than credit unions

• Credit unions are insured by the FDIC, while banks are not

• Banks are owned by their customers, while credit unions are owned by shareholders