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WorksheetsIBT Banking Services & Budgets
Total questions: 25
Worksheet time: 50mins
Which of the following is a benefit of using a budget?
helps to keep track of the money you receive
helps to prioritize your spending
helps reach short- and long-term financial goals
all of the above
Which of the following is NOT a benefit of using a budget?
A budget can help you purchase anything you want.
A budget can help you keep track of your money.
A budget can help you make plans to reach your financial goals.
A budget can help you decide the importance of your expenses.
Which of the following should NOT be considered when setting a current budget?
your financial goals
future income
needs and wants
savings
Which of the following should you consider when setting a budget?
your financial goals
needs and wants
savings
all of the above
_________ are good places to look to find your current expenses when building your budget.
banks and credit unions
grocery stores and concerts
bank and credit statements
online research websites
Bank statements, credit statements, and records of cash expenses help you to estimate your _________
credit score
emergency fund needs
expenses
available investments
In addition to needs, what should you plan for first when creating a budget?
possible charitable donations
shopping money
investments
recurring expenses
In your budgeting process, when should you look at recurring expenses?
before reviewing your wants
after considering entertainment expenses
before looking at your needs
after your wants but before your needs
Which of the following statements is true?
Recurring expenses don't need to be planned for because they rarely happen.
Recurring expenses are expenses that can never be stopped.
Recurring expenses should be planned for after looking at your wants.
none of the above.
Which of the following is a way to track your spending?
spreadsheet budget
envelope method
an app
all of the above
Which of the following is not a good way to track your spending?
in your head
notebook and pencil
envelope method
online software or app
Which choice or choices best describe the purpose of an emergency fund?
prepares you for unexpected expenses
keeps you from borrowing money from friends and family
removes the worry about expenses not in the budget
all of the above
When setting a budget, you can choose to make room for
financial goals
entertainment expenses
charitable donations
all of the above
Charitable donations, entertainment expenses, and financial goals are all examples of
activities that contribute to overspending
things that are considered needs
activities that are necessary for a healthy lifestyle
things to consider when creating a budget
Unexpected expenses
can make it hard to stick to your budget
may cause you to be unable to pay necessary bills
should be planned for
all of the above
Which of the following choices below is NOT a type of savings account?
retirement
CD- Certificate of Deposit
safe deposit box
an account that lets you withdraw money
What gives customers 24-hour access to banking services, such as deposits and withdrawals?
Automated teller machines
insufficient funds
interest
maintenance fee
What is a written order used to tell a bank to pay money from one account to the check holder?
deposit slip
direct deposit
check
checking account
What is the percentage of money that is in an account that a bank pays on some accounts?
Interest
Interest Rate
Simple Interest
A key difference between commercial banks & credit unions is that:
Commercial banks are ‘for-profit’ and credit unions are ‘not-for-profit’
Commercial banks typically pay higher interest rates than credit unions.
Credit unions are more commonly located in rural areas while commercial banks are more
commonly located in urban areas.
Commercial banks offer more services, such as debit cards and online banking, than credit unions.
Since Taylor was a young child she has kept her savings in a piggy bank. She likes this method of saving because she can have immediate access to the money if she needs it. Recently, in a class at school, discussion focused on why depository institutions are safer than her piggy bank. Some students’ comments were based on fact while others were based on myths. Which aspect of security at a depository institution is NOT TRUE?
Depository institutions have insurance protection for up to $250,000 per depositor per account type. I If something happened to the money in the bank, you would get the value of your account back as long as the deposited amount was no more than the insurance limit.
All money stored at a depository institution is kept safe at all times by numerous security measures.
Information about depositors and their accounts is kept in secure data storage.
Depository institutions have insurance protection. Depositors can have multiple accounts insured at the same depository institution as long as each account has no more than $100,000.
Ariel is saving money to purchase a new computer before she leaves for college in two years. She wants to open a special account at a depository institution to keep her saved money safe. She has asked you for advice on which type of account would be best for her. What would be the best advice for Ariel?
Check several depository institutions and choose one with a free, no-interest checking account. That way, when Ariel has saved enough for her computer she can simply write a check to pay for it.
Shop around for the depository institution with the highest interest rates for their savings accounts. She would be able to make regular savings deposits and earn interest while she is saving up for the computer.
Look for a Credit Union that offers share draft accounts. These secure accounts are designed especially for saving for long-term financial goals.
Shop around for a depository institution that offers safe deposit boxes. These accounts offer extra security for deposits and can be set up to allow her to withdraw her money when she needs it.
David made a mistake in his checking account recordkeeping and spent $10 more than he had deposited in his account. As a result, he can expect to be charged a(n):
ATM Fee
Contact Fee
Safe Deposit Fee
Overdraft Fee
an independent agency created by the federal government to protect bank customers by insuring their deposits
Federal Deposit Insurance Corporation
Financial Depository Insurance Company
Financial Department of Insurance Corporation
