Banking Unit Test - Review

A type of account that allows for frequent deposits and withdrawals, often used to pay bills or make purchases with checks or a debit card.

• Checking Account

• Savings Account

• Certificate of Deposit (CD)

• Money Market Account

An account designed to store money safely while earning interest, typically used for saving money over time.

• Checking Account

• Savings Account

• Certificate of Deposit (CD)

• Money Market Account

A type of savings account that usually offers higher interest rates but requires a larger balance and may have restrictions on withdrawals

• Checking Account

• Savings Account

• Certificate of Deposit (CD)

• Money Market Account

A savings product where money is deposited for a fixed term (such as 6 months or 1 year) at a guaranteed interest rate; withdrawing early often results in a penalty.

• Checking Account

• Savings Account

• Certificate of Deposit (CD)

• Money Market Account

A card linked to your checking account that allows you to make purchases or withdraw cash directly from your bank account.

• Direct Deposit

• Credit Card

• Debit Card

• Prepaid Card

A card that must be loaded with funds in advance before it can be used for purchases, not connected to a checking or savings account.

• Direct Deposit

• Credit Card

• Debit Card

• Prepaid Card

An electronic transfer of pay, directly into a bank account, eliminating the need for a paper check, usually from an employer.

• Direct Deposit

• Credit Card

• Debit Card

• Prepaid Card

Which of the following is an effective strategy for personal saving?

• Wait until the end of the month and save whatever is left

• Save a certain percentage of each paycheck

• Cover all of your wants and needs and save whatever is left over

• Take out a payday loan so you can save before you receive your paycheck

All of the following statements about bank accounts are true EXCEPT…

• If the bank account is FDIC-insured, your money is safe

• Many banks pay interest on the money you deposit into your savings account

• 1. Historically, savings accounts earn higher returns than investments in the stock market

• Money in a checking account is usually easy to access via ATM, debit card or check

All of the following are true about prepaid cards EXCEPT…

• 1. Prepaid cards are a useful option for someone who is unbanked to make online purchases

• 1. Prepaid cards are a great way to build credit

• Prepaid cards typically include a lot of fees

• 1. Prepaid cards are usually accepted anywhere that debit and credit cards are accepted