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WorksheetsUnit 2 - Consumerism & Money Management Study Guide
Total questions: 63
Worksheet time: 2hrs 5mins
What is one difference between Banks and Credit Unions?
Banks have Checking accounts and Credit Unions have Savings Accounts
Banks are for profit. Credit Unions are Non-profit.
Banks can give loans and Credit Unions cannot
Credit Unions allow everyone to join and Banks are selective
What agency insures accounts at banks?
IRS
DHS
FDIC
FICA
How do financial institutions make most of their money?
Fees
Interest
Mutual Funds
Loan Payments (Principle)
Which of the following pays the highest interest rate?
CD
savings account
checking account
money market account
All money in financial institutions insured by FDIC is insured for up to which amount?
$100,000
$10,000
$250,000
$25,000
The FDIC stands for the Federation Deposit Insurance Company
True
False
This type of bank is the largest savings institution in the US
commercial banks
credit unions
savings banks
government banks
This type of bank is not for profit and therefore offers higher interest rates.
commercial banks
credit unions
savings banks
savings and loan associates
This type of bank is pays interest and is owned by a CEO
commercial banks
credit unions
savings banks
savings and loan associates
This type of account has the largest minimum deposit
savings
CD
MMA
government bond
This type of account cannot be added to once opened.
savings
CD
MMA
government bond
This type of account cannot be withdrawn from once opened without facing a large penalty.
savings
CD
MMA
government bond
This type of account is locked in for a set period of time.
savings
CD
MMA
government bond
This type of account is not insured by the FDIC.
savings
CD
MMA
government bond
This type of account has a low, flexible interest rate and a low minimum deposit.
savings
CD
MMA
government bond
This type of account has a medium, flexible interest rate and can be added to and withdrawn from after opening.
savings
CD
MMA
government bond
Credit unions are not insured by the FDIC.
True
False
What has to happen before you save money?
The government takes its piece
You pay living expenses
The government takes its piece AND you pay living expenses
Nothing
Banks use this as an incentive to get you to put more money into your account.
Interest rates
Discounts
Fees
What is a “dark pattern”?
A computer virus that steals your data
A deceptive design technique that tricks users into making choices they wouldn’t normally make
A theme setting that makes a website darker
A type of internet scam involving fake accounts
Which of the following is an example of a dark pattern?
a clear "unsubscribe" button in an email
a pop-up that asks if you want notifications
a website that hides the "cancel" option in small grey text
a survey that gives you honest choices
Why is understanding dark patterns important for personal finance?
they teach you how to build your own website
they help you get better credit offers
they help you avoid wasting money or sharing personal data unknowingly
they make online shopping easier
Which of the following is an example of a scam?
a legitimate online store with customer reviews
a fake website that looks like your bank and asks for your password
a budgeting app that tracks expenses
a coupon site that gives discounts
What is “skimming”?
reading financial news quickly
using a hidden device on an ATM or card reader to steal card data
charging extra money on top of the purchase price
writing fake checks
How is “shimming” different from “skimming”?
Shimming is legal, skimming is not
Shimming only affects online purchases
Shimming targets chip cards, while skimming targets magnetic stripes
Shimming only happens at restaurants
Which of the following is a sign of a phishing message?
A message from your bank sent through its official app
A personalized email with no links or attachments
An urgent email asking you to “verify your account immediately”
A thank-you message after a real purchase
How can you protect yourself from scams and identity theft?
Click links in suspicious emails to check what they say
Write your PIN on your debit card for easy access
Monitor bank statements, use strong passwords, and avoid sharing personal info
Share your credit card number only with friends
If you invest $1,000 at an annual interest rate of 5% compounded yearly, how much will you have after 3 years?
$1,157.63
$1,200.00
$1,050.00
$1,150.00
Which formula is used to calculate the future value (A) of an investment with principal (P), annual interest rate (r), compounded n times per year for t years?
A = P(1 + rt)
A = P(1 - r/n)^(nt)
A = P + rt
A = P(1 + r/n)^(nt)
What is the main difference between simple interest and compound interest?
There is no difference; both are calculated the same way.
Simple interest is calculated only on the principal, while compound interest is calculated on the principal plus accumulated interest.
Simple interest is always higher than compound interest.
Compound interest is only used for loans, not savings.
If you deposit $2,000 in a savings account at a simple interest rate of 4% per year, how much interest will you earn after 5 years?
$800
$200
$500
$400
What is the simple interest earned on a principal of $1,500 at an annual rate of 6% after 4 years?
$90
$400
$360
$240
If you invest $2,500 at an annual interest rate of 3% compounded quarterly for 2 years, what will be the approximate future value?
$2,654.00
$2,650.00
$2,700.00
$2,600.00
Interest Rate: 3.75%
Time: 25 years
Compounded Monthly
State the future account balance.
In a zero-based budget, if you earn $2,000 a month, how much money should be “unassigned” at the end of your planning?
$0
$200
$20
Whatever is left after paying bills
Which of the following is a key benefit of using a zero-based budget?
it requires no tracking of expenses
it allows flexible spending without limits
it helps you see exactly where your money is going
it automatically saves 10% of your income
In the 70-20-10 budget, what does the “70” typically represent?
savings and debt repayment
living expenses like rent, food, and transportation
charitable giving
entertainment
The “20” in the 70-20-10 rule focuses on:
savings and paying off debt
discretionary spending
travel and luxury items
taxes
What are the three main categories in the 50-30-20 budget?
needs, wants, and savings/debt repayment
spending, giving, and investing
food, housing, and fun
fixed costs, variable costs, and discretionary
Which budget method would most appeal to someone who likes to plan every dollar in detail?
zero-based buget
50-30-20
70-20-10
no-budget method
