Banking

About how much should you save in an emergency fund?

• 1 month of expenses

• 3 months of expenses

• 6 months of expenses

• 1 year of expenses

How does inflation impact the money in your savings account?

• It increases the value of your money

• It decreases the value of your money

• It has no impact on the value of your money

• It depends on the interest rate

Saving accounts differ from checking accounts in that...

• Saving accounts have higher interest rates

• Saving accounts have more fees

• Saving accounts have unlimited transactions

• Saving accounts have overdraft protection

Overdraft protection...

• Allows you to withdraw more money than you have in your account

• Protects your account from unauthorized transactions

• Helps you save money for emergencies

• Provides insurance for your deposits

Which of the following is TRUE about banks and credit unions?

• 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

What are some reasons for why so many Americans live paycheck-to-paycheck?

• Low wages

• High cost of living

• Lack of financial education

• All of the above

Which of the following accurately describes a difference between compound interest and simple interest?

• Compound interest is calculated on the initial amount only

• Simple interest is calculated on the initial amount only

• Compound interest stays the same each year

• Simple interest grows faster over time

Which is NOT a typical goal for a savings account?

• Saving for retirement

• Saving for a down payment on a house

• Saving for a vacation

• Saving for a new car

Which of the following is NOT required to open a checking account?

• Proof of identity

• Proof of address

• Social security number

• Minimum age requirement

What is a typical overdraft fee?

• $10

• $25

• $50

• $100