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W!SE Banking (URHS) #1

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Choose the best answer:

Why deposit money at a bank or credit union instead of hiding it at home?

a)


It is insured

b)

It is more convenient

2.

What is the purpose of a savings account?

a)

To grow your $ for

long-term wealth

b)


To keep $ safe for a down payment or an emergency fund

c)

To borrow $ to

purchase items

3.


What is the rule for keeping an Emergency Fund?

a)


You should have

2 months of your total salary in an emergency fund

b)


You should have

3-6 months of your living expenses in an emergency fund

c)

You can use credit as an emergency fund

4.

Savings accounts are for transactional banking

a)


True

b)

False

5.

Lending institutions with lowest interest rates include...

a)


Banks and Credit Unions

b)


Finance Companies

c)

Pawn Shops

d)

Payday Loan Companies

6.

The central banking system in the United States.

a)


Federal Reserve

b)


The Mint

c)

The U.S. Treasury

d)

First National Bank of the U.S.

7.

What is an ATM used for?

a)


Withdraw money

b)


Order checks

c)


Balance your checkbook

d)


Write checks

8.

If you are going to use an ATM,

you better know your...

a)


Home address

b)

Answers to security question

c)


Your Personal Identification Number (PIN)

9.

What is a CD in personal finance?

a)


A type of checking account

b)


A savings account where you lock in your $ for a term to earn a higher interest rate

c)


A savings account that allows you to withdraw your $ at any time

10.

Which is NOT an online banking service?

a)


Withdraw cash

b)


Deposit checks

c)


Transfer funds

d)


Order checks