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WorksheetsChecking & Saving Review
Total questions: 63
Worksheet time: 17mins
It’s easier to withdraw money from a savings account rather than a checking account.
True
False
Which is not a difference between saving and checking?
Checking accounts allow you to withdraw money with no limit while saving does have a limit
Interest is less in checking account compared to savings
Savings are used less compared to Checking Accounts
Checking account allows you to to see your money and not your savings account
Savings accounts usually give debit cards and checkbooks.
True
False
If I put $100 in a bank account with a 2% interest rate, how long will it take for the money to double?
3 years
68 years
36 years
44 years
What is ONE difference between savings accounts and checking accounts?
Savings accounts earn less interest than checking accounts.
Checking accounts place comparatively few limitations on where and when you can deposit and withdraw your money than savings accounts.
Your savings account acts a highly effective transactional vehicle while your checking account serves as a highly effective savings vehicle.
In the following scenario, which savings account is the best:
Jeff wants to store his money in an account that has a higher interest rate compared to his traditional savings account. He isn’t going to check up on it, but he doesn't want it to be a timed-savings account.
Certificate of Deposit
Money Account
Traditional Savings
Online Savings Account
Online Saving Accounts and Money Market Accounts are similar in the aspect that you can write checks and your money is not stuck for a set period of time
True
False
Which of the following corporations do not offer P2P services?
Samsung
Apple
PayPal
Uber
What are the four types of checking accounts?
FDIC checking account, Joint checking account, ATM checking account, interest bearing checking account
Student checking account, interest bearing account, joint checking account, free checking account
Free checking account, APY checking account, interest bearing checking account, FDIC checking account
Certificate of deposit, money market account, free checking account, interest bearing checking account.
Money market savings account can come with a debit card
True
False
You just signed up for overdraft protection and your roommate told you that once you are signed up you can not opt out, is that true or false ?
True
False
An overdraft fee is charged for depositing more money than you have in the account.
True
False
You can get alerts when you make a purchase with your debit card or when there is an unusual purchase on your debit card.
True
False
If you're a teen who who wants to start saving money, which would be the best fit for you?
A bank that doesn't have any fees, and its well known and trusted by a lot of people
A bank that has fees and its not well known, and not trusted
A bank that doesn't have fees, but its not well known and not trusted
Amy is an 11th grader who recently got a job at Dunkin’ Donuts and because of this, wants to get a checking account. The account options include a checking account with overdraft protection and a checking account with no overdraft protection. Which option below is the decision Amy should make?
The checking account with the overdraft protection.
The checking account without the overdraft protection.
The checking account without the overdraft protection but also get a low balance alert.
Leave the account business to her parents and deal with it when she goes to college.
A savings account lets you write checks and withdraw/deposit money using debit cards.
True
False
What are the four types of savings accounts?
Student savings account, retirement savings account, traditional savings account, money market account
Traditional savings account, online savings account, certificate of deposit, money market account
Regular savings account, online savings account, budgeting account, money market account
College savings account, traditional savings account, online savings account, retirement savings account
You should start saving later in your life.
True
False
ATM stands for Automated Teller Machine. True or False?
True
False
True or False, you can easily withdraw or deposit money from a savings account?
True
False
What is the Loss Aversion Switch ?
The effects of losing money from your savings
The concern to feeling bad in the future for an item you may not buy
A way of describing downfalls in the economy
Fear that one will miss out on trends
Which of the following is NOT an example of how to activate customer impulse buying?
Increasing the visibility of the products
Strategically positioning high marketed products
Decreasing the amount of products sold in-store.
Cross merchandising
A savings account is a tool for investing, rather than spending money
True
False
If you were looking to invest $40,000 into an account so that you could grow your money over a twenty year period, which type of a savings account would you place your money into?
Money management savings account
Certificate of Deposit (CD)
Traditional savings account
Online savings account
Direct deposit typically refers to your ___ sending your ____ electronically to your bank account.
employer, bills
parents, allowance
employer, paychecks
What of the following is true about someone who has just signed up for overdraft protection?
They can now choose how much money under their account balance they can go. They can not receive fees because it will alert them and protect them from going under their account balance. They cannot Opt out until the end of the year. They can now go under their balance but will receive an overdraft fee depending on their bank agreements.
They can now go under their balance but will receive an overdraft fee depending on their bank agreements.
They can not receive fees because it will alert them and protect them from going under their account balance.
They cannot Opt out until the end of the year.
A direct deposit transfers money from your checking account towards your bills
True
False
Using a checking account, you can make withdrawals using a debit card connected to your account.
True
False
Matt wants to start saving up for his dream car which costs around $15,000. He plans to buy it in around 5 years and already has $5,000 to put into the account. What type of savings account would best suit Matt’s needs?
Traditional Savings Account
Online Savings Account
Certificate of Deposit
Money Market Account
Writing a check is a way to get money INTO your checking account?
True
False
If you have $20 in your checking account and swipe your debit card for an item that costs $15, your card will be declined.
True
False
Which of the following is a way to get money OUT of your checking account? (Select two)
Call the bank and they’ll mail it to you.
Set up a recurring or one-time payment using the bank’s online bill pay service.
Make purchases with a debit or credit card.
Open up a savings account and transfer money there each purchase.
Which of the following is a way that you can take money out of your checking account?
By using credit cards to take money out of your checking account.
By pleading with the people at the bank.
By using debit cards to take money out of your checking account.
By using coupons to take money out of your checking account.
Which one of the following is not a possibility as a result of the following:
Situation: You go over the balance you have in your checking account
Money gets transferred from your savings account to the checking account
You receive an overdraft fee
You continue to remain in the negative balance; the bank will trust you pay it back in the next deposit
You are denied the transaction that caused your balance to go into overdraft
The highest interest rate savings account are MMA’s
True
False
You should sign up for overdraft protection because it protects you from overdraft fees by paying them for you.
True
False
Suppose Bob has opted for overdraft protection under the following terms:
There is a $50 overdraft fee They will charge a maximum of 3 overdraft fees/day If the account is overdrawn by $3 or less, there will not be an overdraft fee
Suppose Bob has $53 in his checking account at the current moment and makes the following purchases in order:
A $50 lunchbox A $5 toy A $30 lunch A $15 item
How much extra will Bob have paid in overdraft fees?
(a)
True or False: Is this the formula for Rule of 72?
Rate of return/ 72= Time for Investment to Double
True
False
Which of the types of digital wallet have Magnetic Secure Transmission as an addition to the way a digital wallet to work on older card-readers?
Samsung Pay
Apple Pay
Google Pay
Pay Pal
You have to pay extra money for FDIC insured bank accounts and it is not worth it.
True
False
Check-cashing services charge minimal fees for cashing checks.
True
False
Why is it important to have Mobile Banking alerts? Choose all that apply:
It can help you to know when the money sent electronically from your employer to your account is ready for use
It alerts you of an unusually large purchases that were made in your name
It alerts you when the bank is giving away free money
It warns you when unusual activity is happening within your account, helping you report fraud faster
It actually isn’t important at all, anything the bank has to tell you in unimportant
Which of the following is NOT a disadvantage of a savings account?
Liquidity
Withdrawal limits
Minimum balance requirements or fees
Low rates of return
The 5 reasons we impulse buy are: Loving Shopping, The Loss Aversion Switch, Twisted Heuristics, The Desire to Save, and Rose Tinted-Lenses.
True
False
Greg wants to put a million dollars which he won from a lottery ticket into a bank, but wants to be ensured that his money will be safe. Greg ends up splitting the money into 5 different banks, each having 200,000 dollars deposited within them. Greg believes his money will be insured, is Greg’s judgement true or false?
True
False
Which of the following is NOT a benefit of a Certificate of Deposit?
Money is FDIC insured
Money can be withdrawn at any time
Typically have higher interest rates than traditional savings accounts
Typically don’t have a monthly maintenance fee
Which of the following can help you avoid paying money due to overdrawing your account?
Low Balance Alerts
Overdraft Protection
FDIC Insurance
Having a checking account
Checking accounts offer a higher interest rate than savings accounts, as checking accounts are more popular
True
False
You can deposit money in your checking account by using an ATM.
True
False
What is the most common reason why mobile payment through an app can be challenging?
The apps cost money
You can’t store that much money in one of these forms of payment
Not every place of retail will have the technology that accepts this type of payment
Only apple makes these types of applications
What is overdraft protection and its side effects?
When the bank covers the initial payment and pays you back later for using their bank to cover the charge with interest
When the bank lowers your credit score if you go over the limit, then they charge you 14% interest on the product of purchase later
When the bank covers the overdraft payment without notice and charges you later for the coverage with fees.
When the bank blocks your account from making any more purchases that would go over your credit limit, then they charge you later with maintenance fees.
Which would be the best use for a recurring payment through online bill pay?
Groceries
The check from dinner at a restaurant
Your water bill
A one-time donation to UNICEF
What type of savings account is your money stuck in?
Traditional Savings Account
Online Savings Account
Certificate Of Deposit
Money Market Account
Simple interest works at a faster rate then compound interest and adds interest to your original investment.
True
False
The 50-20-30 rule allocates 50% of what you earn towards savings
True
False
People use online banking more than regular banking when making international transfers.
True
False
What type of savings account has an early withdrawal penalty fee?
Online savings account
Certificate of Deposit
Money Market Account
Traditional Savings Account
Why do you need to authenticate transactions when you’re mobile banking and transferring funds?
To secure and double check the transaction
To ensure you are the one making the transaction
To prevent hackers and scammers from gaining access to your mobile banking account and making transactions from it
All of the above
How long should it take to fulfill a short term savings goal?
2 months - 3 years
Over 3 years
Less than 2 months
Less than a month
Abby is living a paycheck to paycheck life. Her spendings looks like 40% for her needs, 50% for her wants and 10% to her savings which ultimately is used for her needs. She has trouble paying for all her bills and saving for her marriage that is coming up in six months. As her friend, she asks you to help her with her financial situation. What advice would you give her?
Let her fiance pay for all the wedding expenses
Use the 50-30-20 rule for spending
She should save her savings to a CD savings account for 6 months
All of the answers
How much does FDIC insure up to in the event of bank failure?
$2,500
$25,000
$250,000
$2,500,000
A bank statement is prepared for you once every 6 weeks.
True
False
If a person is unbanked, which of the following are they not subject to?
Potential higher monthly auto fuel costs
Potential high fees
Potential high utility bills
Potential loss of time
