Financial Math Test - Banking

Juan saved $1,000 from his summer job cleaning pools. Which of these account types would work best for him if he doesn't need access to the money for a number of years AND wants to earn the highest interest rate?

• Regular savings account

• Money Market account

• Checking account

• Certificate of Deposit

Three of these statements best describe a checking account. Which statement best describes a savings account?

• 1. This account offers a convenient way to pay bills and access cash from an ATM

• 1. This account pays you interest on money you have put away for later to help your money grow

• 1. This account is automatically debited when you use a debit card

• 1. This account typically allows an unlimited number of transactions per month

1. You are at the checkout counter at the local supermarket and use your debit card to pay for your groceries. Where does the money for this purchase come from?

• 1. Your credit card company covers the cost

• 1. It is deducted directly from your checking account

• 1. Your credit card company provides you with a cash advance to cover the cost

• It is deducted directly from your savings account

Which of the following transactions will REDUCE your checking account balance immediately?

• 1. Writing your monthly rent check which you will mail tomorrow

• 1. Using your debit card to pay for groceries at the supermarket

• Using your credit card to pay for your school books

• Depositing a check at a local bank branch

Tags

CCSS.7.RP.A.2D

1. FDIC Insurance is...

• 1. Optional coverage consumers can purchase so that their bank deposits remain safe

• Insurance bank branches can buy to protect their business against fraud and scams

• Required if you want to do online or mobile banking

• Protection for bank customers’ deposits up to $250,000, guaranteeing their money is still available if the bank goes out of business

When signing up for a new checking account, you answer "Yes" to receive overdraft coverage. On this day, you have $10 in your account and go out and use your debit card to buy lunch for $12, a movie ticket for $12 and dinner for $15. What is likely to be the outcome resulting from these transactions?

• Your account will be closed

• You will likely be charged an overdraft fee for one or more of the transactions and also will need to repay the bank for the amount overdrawn

• Since you requested overdraft coverage, the bank will not allow you to overdraw your account so your debit card will be denied

• The bank will provide you five days to add funds to your account to cover the overdraft and no fees will be assessed

Tags

CCSS.7.NS.A.1C

How often do customers typically receive a bank statement for their checking account?

• 1. Daily

• Weekly

• Monthly

• Annually

Tags

CCSS.6.RP.A.3B

All of the following are ways banks contribute to the economy, EXCEPT:

• Providing a secure place to store money

• Issuing stock in companies

• Lending money to businesses and individuals

• Moving money between parties through services like wire transfers

Fill in the blanks: Direct deposit typically refers to your ______ sending your ______ electronically to your bank account.

• employer, bills

• employer, paycheck

• parents, allowance

• state government, taxes

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 one reason that it is important to start putting money away for retirement as early as possible?

• Money accrues more interest if saved earlier (longer time for compounding interest)

• It doesn't matter. Retirement is a long time away

• You have to pay a fee for money saved later

• Inflation makes the money worth more