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CM/FA Unit 2 Test - Banking Savings/Checking

Total questions: 21

Worksheet time: 38mins

Name
Class
Date
1.

At what age can teens open a checking account on their own?

a)

16

b)

13

c)

18

d)

15

2.

What is a requirement when opening a checking account if under 18 years old?

a)

School ID

b)

Having a Savings Account in the same bank

c)

A joint owner. Usually a parent.

d)

all of these

e)

none of these

3.

Why should you keep track of your checking account?

Give two (2) reasons

4 lines
4.

If you notice any suspicious activity in your account you should

a)

Call 911

b)

Notify your bank as soon as possible

c)

Tell your friends

d)

Tell your mom/dad

5.

What fees might a checking account have?

List at least one

4 lines
6.

A card that is connected to a person's checking account.

a)

money order

b)

check

c)

gift card

d)

debit card

7.

How are debit cards and credit cards different?

Give two reasons how they are different from one another

4 lines
8.

A fast and easy way to pay a person using your phone is _____________.

a)

payment app

b)

gift card

c)

check

d)

cash

9.

What are two (2) DISADVANTAGES to having a cashless society?

4 lines
10.

Direct deposit, online payments, and ATMs are all examples of Electronic Funds Transfers

a)

True

b)

False

11.

What is a savings accounts?

4 lines
12.

It's a Savings accounts advantage ...

a)

Savings accounts are generally interest-bearing, meaning you will earn interest on the money you save in the account.

b)

savings account let you make up to six withdrawals or transfers per statement cycle.

c)

You don’t need a large amount of money to open a savings account, and you also have easy access to your money

d)

All the answers are correct

13.
The percentage rate that is used when calculating the interest (money) paid on a savings, money market, or investment account.
a)
Rule of 72
b)
Interest rate
c)
Simple Interest
d)
Rate of Return
14.

Write one characteristic of a checking and a savings account that shows how they are different from one another

4 lines
15.

In 2008, what started happening to the banks who actually loaned the money to the people to buy the houses they couldn’t afford?

a)

The bank executives were all facing jail time for tricking people into getting home loans they couldn't afford.

b)

The banks started failing because they told their customers they didn't have to make the payments because they knew they couldn't afford them.

c)

The banks were making a lot of money on selling all the homes they repossessed.

d)

The banks started failing because so many people were not making their loan payments and the whole economy started falling apart.

16.

Why did the US Government feel they could not allow these big banks to go bankrupt?

a)

They were 'too big to fail'. The whole US economy depended on big banks being able to provide loans for businesses and citizens.

b)

The banks provided lots of jobs for Americans.

c)

The bank executives had donated millions to the campaigns of many congressmen and women.

d)

They were a part of America's history from the 1800s and they felt they should continue to be America's banks.

17.

You choose Option B for Overdraft Options. Assume that you have $30 in your checking account and $50 in your savings account. What would happen if you tried to take out $45 at the grocery store using your debit card?

a)

Your transaction would be approved and the entire $45 bill would be charged to your savings account, not your checking account.

b)

Your transaction would be approved since the bank would transfer money from your savings to your checking account, and you’d be charged a $10 fee.

c)

Your transaction would be denied and you would have to return the groceries if you didn’t have the cash to pay for it.

d)

Your transaction would be approved since the bank would transfer money from your savings to your checking account, and you’d be charged a $37 fee.

e)

none of these

18.

Which of the following statements is TRUE?

a)

The majority of Americans have an adequate emergency fund

b)

The majority of Americans have sufficient amounts of money saved for retirement

c)

The majority of Americans have an adequate emergency fund, but do NOT have sufficient amounts of money saved for retirement

d)

The majority of Americans do NOT have an adequate emergency fund or sufficient amounts of money saved for retirement

e)

None of these statements are true

19.

What are the characteristics of BANKS in terms of :

Ownership (who owns banks)

Objective (what's the 'goal' of a bank)

4 lines
20.

What are the characteristics of CREDIT UNIONS in terms of :

Ownership (who owns them)

Objective (what's the 'goal' of a credit union)

4 lines
21.

Match the following

a)

Bank

1.

"one-stop shop";

tries to meet all your financial needs in one location

b)

Credit Union

2.

offers lower interest rate loans to its members

c)

Members are in control like fire fighters or teachers

3.

Credit Union

d)

Anyone can open an account

4.

Bank