Chapter Review - Review Key Terms

Fill in the blanks below using the key terms from this chapter. Two federal agencies insure the money you deposit (up to $250,000); the ________ insures money in credit unions.

• NCUA

• FDIC

• FEMA

• SEC

Banks often promote ________ as a financial safeguard, but it’s actually an unhealthy money lifeline.

• Overdraft Protection

• Credit Card

• Savings Account

• Loan

________ don’t have a physical building or a branch manager.

• Online banks

• Traditional banks

• Credit unions

• Community banks

5. Using a(n) ________ is one way you can track your spending, deposits, and transfers.

• app

• notebook

• calculator

• calendar

6. It’s not uncommon to be charged a $35 ________ if you spend more money than you have in your account.

• overdraft fee

• late fee

• service charge

• transaction fee

7. Setting up ________ is the best way to make sure your paycheck makes it to your bank account safely.

• direct deposit

• manual deposit

• cash deposit

• check deposit

8. ________ refers to how easy it is to convert an asset (such as a house) into cash.

• Liquidity

• Solidity

• Volatility

• Profitability

No matter how you choose to track your transactions (income and spending), it’s your responsibility to ________.

• keep a record

• ignore them

• spend more

• ask someone else to do it

While a basic savings account is a great option for short-term savings goals, you should keep your emergency fund money in ________.

• a high-yield savings account

• a checking account

• a certificate of deposit

• a retirement account

Overdrafting your checking account often indicates a sign of:

• Responsibility

• Boredom

• Laziness

• Debt