Banking Basics Review

What is the primary difference between a checking account and a savings account?

• Checking accounts are for long-term investments; savings accounts are for daily transactions.

• Checking accounts are insured by the FDIC; savings accounts are not.

• Checking accounts are for everyday transactions; savings accounts are for long-term goals and earning interest.

• Checking accounts have higher interest rates than savings accounts.

What is a debit card, and which type of account is it typically linked to?

• A credit card linked to your credit history.

• A card used to borrow money from a bank.

• A card that deducts money directly from your checking account.

• A card that only works at ATMs.

What is the purpose of a checkbook register?

• To sign up for new checks.

• To keep a record of all your transactions and balances.

• To order new debit cards.

• To track your credit score.

What is the purpose of an ATM?

• To apply for a new loan.

• To speak with a bank teller.

• To withdraw cash, deposit funds, and check balances without a bank teller.

• To open a new account.

What is a common feature of a savings account that is not usually found in a checking account?

• The ability to write checks.

• The ability to earn interest on the balance.

• Direct deposit.

• The use of a debit card.

How does an overdraft occur?

• When you deposit more money than you have in your account.

• When you spend more money than you have in your account.

• When you fail to pay a bill on time.

• When you make a direct deposit.

Define direct deposit.

• A loan from your bank.

• The electronic transfer of a payment from the payer directly into the recipient's bank account.

• Depositing a check at an ATM.

• Physically going into a bank to deposit cash.

What is the purpose of a bank statement?

• To report a stolen debit card.

• To provide a summary of all transactions in an account over a period of time.

• To apply for a new credit card.

• To calculate interest earned on a savings account.

Explain the concept of "reconciling" your bank account.

• Comparing your personal records with your bank statement to find any discrepancies.

• Applying for a new debit card.

• Closing an old bank account.

• Changing your bank's location.

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 "minimum balance" requirement?

• The most money you are allowed to have in your account.

• The amount of money you must deposit at least once a month.

• The lowest amount of money you can have in your account without incurring a fee.

• The lowest interest rate you can receive.