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WorksheetsHudspeth Personal Finance Savings and Banking
Total questions: 22
Worksheet time: 15mins
also called a check card, allows you to make purchases by swiping your card through a point of sale(POS) terminal that is usually located at the merchant’s checkout counter
debit card
credit card
ATM card
a check written for an amount greater than the balance of the account
overdraft
overspend
fraud
What is the interest rate spread and why is it important?
It is the difference between interest rates on loans and deposits and it is a way banks make money.
It is the amount of interest a bank will charge you for the loan you take out divided by the total cost of the asset. It helps you determine if a loan is fair.
It is the net result of all transactions within the banking structure within a given fiscal time period and it is used by banks and federal regulators to determine the fiduciary responsibility of the financial institution is being upheld to the standards of the law.
I just wanted to see how long I could write on that last answer.
Harry wants to save money in a bank account. He decides to open a _______________ account with a five-year maturity date because it offers a _________________ than a savings account does.
CD; higher interest rate
checking; more ATM withdrawals
money market; a lower maturity period
An account you can deposit money into and then write checks or use debit card to withdraw money is known as a ____________________.
Money Market
Checking
Savings
ATM
Putting money into an account is known as _______________.
Sinking
Placing
Withdrawing
Depositing
Why is opening a bank account a smart way to save money?
You can earn interest on money you place in a savings account
You can cash checks without paying a fee to a currency exchange.
You can make sure your money is safe from theft.
All of the above,
What is the relationship between the interest rate an account pays you and the minimum balance it requires?
The lower the minimum balance the higher the interest rate.
The higher the minimum balance the higher the interest rate.
An account with no minimum balance will pay the highest rates.
There is no connection at all.
What is an overdraft fee? (BTW these are all real fees)
A fee that you are charged when you use a debit card to buy something worth more than what you have in your account.
A fee that is charged when you use an ATM that is not part of your bank's system.
A fee that is charged when you have less money in your account that is required by the minimum balance.
A fee that is charged when you make too many online money transfers out of your savings account in a month.
Why is direct deposit a smart financial idea?
You get your money faster
You get your money safely
You can keep track of your money easier
All of the above
Which of the following accounts would most likely pay the highest interest rate?
A basic checking account
A basic savings account
A savings account with a $250 minimum balance
A $500 CD account with a term of 12 months.
Which of the following accounts is it the easiest to take money out of the bank with?
A basic checking account
A basic savings account
A savings account with a $250 minimum balance
A $500 CD account with a term of 12 months.
Which statement best reflects the philosophy of “pay yourself first”?
An individual should save whatever money is left over after paying monthly bills.
An individual should pay all fixed expenses before paying flexible expenses.
An individual should set aside a predetermined amount of money for saving before using any of that money for spending.
An individual should spend money on the items and activities enjoyed in life before paying any other expenses.
David's Personal Finance class has been discussing the importance of understanding liquidity and he is trying to explain the term to another student. Which statement is the most correct description of liquidity?
How quickly and easily an asset can be converted into cash
The amount of savings available
A measurement of how much a person or household owns once all debts have been paid
The amount of money needed to pay for the necessities and comforts currently enjoyed
In relation to other options, how liquid is a savings account?
More liquid than cash
Less liquid than mutual funds
More liquid than a certificate of deposit
More liquid than a checking account
Another word for balancing your bank account.
Register
Reconcile
Rational
Reconnect
Which of the following is TRUE about checks? (hint: choose 2 correct answers)
You should endorse the back when writing a check
The amount of money is written both numerically and in words
Checks should show up on your statement within 30 days
You should endorse the back when depositing a check
Overdraft protection...
is a service offered only for premium checking accounts.
brings in a few hundred dollars each year to banks.
is a fee-free service that prevents you from overdrawing.
can keep you from overdrawing but charges a fee.
Your friend wants to open up a checking account. Which of the following items is NOT necessary to do so?
His (or his parents') previous year's tax return
Proof of address
Identification
Opening Deposit
