WorksheetsBanking Basics Check-in
Total questions: 19
Worksheet time: 1hrs 29mins
Interest rate = 2.5%
TIme = 3 years.
How much interest?
After much shopping, Mitzi found a car she’d love to buy. When it comes time to talk about financing, the salesperson at the dealer says, “I can offer you 5% on $32,000 for 4 years.” The principal is (a) . The interest rate is (b) . The term is (c)
Which of the following best describes what FDIC Insurance is?
A government backed policy that protects your money if a bank fails
A bank program that protects you from high overdraft fees
Additional accounts offered by banks to save for car and home insurance
Juan saved $1,000 from his summer job cleaning pools. Which of these savings vehicles would work best for him if he doesn't need access to the money for a number of years AND wanted to earn the highest interest rate?
Regular savings account
Money Market account
Checking account
Certificate of Deposit
Which of the following will give you a higher interest rate.
Traditional Savings Account
Money Market
High interest rate and a high minimum balance
Traditional Savings Account
Money Market
Online Savings Account
High interest rate, but money must stay in the account for a certain amount of time
Online Bank - Savings Account
Money Market
Traditional Savings Account
Certificate of Deposit
Jaden a high school junior and is saving for a car. He hopes to purchase it in the next year. Which account would be the best recommendation.
Traditional Savings Account
Certificate of Deposit
Money Market
Interest earned on both the principal and any interest earned on the principal.
Rate of return
Compound interest
Simple interest
Principal earnings
What is one BENEFIT of using a savings account instead of a checking account?
Your savings account will charge lower ATM fees than your checking account
Your savings account will earn interest, so the money in your account will grow without you doing anything
Your savings account lets you write checks or pay bills easily, while it's more difficult to use your checking account
Your savings account allows you to use online banking, while checking accounts require you to visit the bank branch
You earn _______________ by saving money in a savings account.
money
interest
awards
trophies
What is the purpose of a savings account?
it is a place for you to attach your credit card to
it is a place for you to withdrawal money at anytime
it is a safe place for you to save money and earn interest over time
you can take out money to write checks with it
