Chapter 5 - Banking

What is a demand deposit, according to the text?

• A type of loan you get from the bank.

• An account where you promise to leave your money for a certain time.

• A checking account where you can withdraw your money whenever you want.

• An investment in stocks and bonds.

According to the text, what does it mean for a bank to participate in the FDIC program?

• The bank offers higher interest rates than other banks.

• The government insures your money in that bank.

• The bank is only for people saving for college.

• The bank is a credit union.

According to the text, what is direct deposit?

• Receiving a paper check from your job.

• Sending money to someone else's account.

• When the money goes directly into your account on payday.

• Putting money into a savings bond.

According to the text, what are the three types of banks that Maya's mom described?

• commercial banks, credit unions, and investment companies

• Food banks, time banks, blood banks

• commercial banks, credit unions, and river banks

• Credit cards, debit cards, and savings banks

According to the text, a term deposit is:

• a savings account with high liquidity.

• a type of long-term investment.

• a financial contract with a bank to keep an amount of money for a specific period in exchange for interest.

• a checking account without interest.

According to the text, what should Maya do if her debit card is stolen?

• Call the bank immediately

• Wait for the bank to contact

• Do nothing

• Inform the police

Maya learns about different ways to save and spend money. Which of the following is an effective way to save money?

• Invest in high-risk stocks

• Spend all the money on entertainment

• Open a savings account

• Buy unnecessary luxury items

Maya learns about the importance of bank reconciliation. Why is it important to keep track of your money and what methods do you use to do it?

• It is important to avoid errors and fraud; you can use a ledger or mobile apps.

• It is only important for large companies; you can only use specialized software.

• It is not important to keep a record; the bank does it for you.

• It is only important to save money; you can use a piggy bank.

What is the primary benefit of having a budget, according to the text?

• It helps you manage your money effectively and avoid overspending.

• It allows you to spend more on luxury items.

• It eliminates the need for a savings account.

• It guarantees you will become wealthy.

According to the text, what should Maya consider before taking a loan?

• The interest rate and repayment terms.

• The type of flooring in the bank.

• The color of the bank's logo.

• The number of branches the bank has.