WorksheetsSafe Digital Banking Financial Concepts
Total questions: 37
Worksheet time: 19mins
What is an account balance?
The amount of money you have in an account.
The fees you must pay to have an account.
An action you take to protect your savings.
A type of account offered by a financial institution.
An account balance shows _______________.
how much money you need to open an account
how different accounts at a financial institution can be connected
if you are eligible to open an account
the amount of money that you have in an account
What service does a financial institution offer to help you track your money?
Interest payments
Checks
Safe deposit boxes
Account balances
What is a transaction that has not been processed yet by a financial institution?
An overdraft transaction
An annual transaction
A pending transaction
An insured transaction
What is a pending transaction?
A transaction done digitally or at an ATM (not in person)
Another name for an overdraft fee
A transaction that is a withdrawal
A transaction that has not been processed yet
Why would you possibly not be able to use a check that you just deposited in a checking account?
The deposit is still pending.
The deposit has been overdrafted.
The FDIC/NCUA has not insured it yet.
The financial institution is closed for the day.
Which balance shows the amount of money you can use now?
Current balance
Available balance
Pending balance
Checking balance
Which account balance includes pending transactions?
Available balance
Current balance
Raw balance
Interest balance
Why do current and available balances sometimes show different amounts of money in the same account?
Current balances subtract pending transactions from the available balance.
Available balances include earned interest.
Current balances include earned interest.
Available balances subtract pending transactions from the current balance.
What is it called when someone doesn’t have enough money in an account to cover a charge?
Compound interest
Pending charge
Insufficient funds
Negative balance
Financial institutions charge a fee for an overdrawn account because ___________________________.
you have spent more money than you had in an account
all accounts have yearly fees associated with them
overdrawn accounts are considered premium and offer more options
you haven’t deposited any money in a month
What does it mean when someone’s account is overdrawn?
Funds have been transferred from a savings account to a checking account.
The account has been closed.
It’s not earning interest because there is less than $100 in the account.
They’ve charged more to their account than they have available.
A savings account that is insured by the FDIC/NCUA means _________________
the money is protected by the government
it can be used only in an emergency
it has one of the highest interest rates around
the account is invested in government bonds
One sign that your money will be safe in a savings account is if _____
it is held in a weatherproof box
there are usually security guards in the lobby
it is insured up to $250,000 by the FDIC/NCUA
it is invested in stocks which are protected by the stock exchange
Savings accounts can be considered safe because they are _____
strategically placed
placed within vaults
investments
insured by the FDIC/NCUA
How can you check your account balance?
Call your financial institution directly.
Log in to your account online.
Download and use your financial institution’s app.
All the above
Which is not a way you can check your account balance?
Call your financial institution directly.
Log in to your online account.
Contact the FDIC/NCUA.
Use your financial institution’s mobile app.
It’s essential to know how to check your account balance in order to manage your money. Which of the following is not an effective way of checking your balance?
Contact the FDIC/NCUA.
Call the financial institution directly.
Check your account online.
Download the financial institution app.
What type of account is used to pay for daily expenses?
Available account
Savings account
Checking account
Pending account
What is one benefit of a savings account?
You can use a debit card to pay for purchases.
You can earn interest on the money in the account.
You can track expenses through your checkbook.
You can use it to pay for daily expenses.
Which best describes the purposes of savings and checking accounts?
Savings accounts are for paying for expenses and checking accounts are for meeting financial goals.
They are both the same, just sometimes used differently.
Savings accounts are for meeting financial goals and checking accounts are for paying daily expenses.
Savings accounts are for tracking expenses and checking accounts are for paying them.
An account that earns interest and is used to meet financial goals is a ______________.
accounts payable
savings account
account balance
checking account
Which is not a benefit of a checking account?
It offers very little or no earned interest.
It is usually connected to a debit card.
It offers a card to withdraw cash from an ATM.
You can write checks from it to pay for things.
Which account is more likely to have penalties for frequent withdrawals?
Available account
Savings account
Checking account
Pending account
Financial institutions pay _____ to you for letting them use your money.
interest
fees
penalties
maintenance costs
What is interest?
A reward for maintaining a certain available balance in a checking account.
The money a bank pays you for allowing them to use your money.
A reward for avoiding penalties on a checking account.
Bonuses given for using a debit card.
Which type of interest can earn more money over the long term?
simple interest
compound interest
complicated interest
savings interest
What is a benefit of an account with interest?
You earn money.
You avoid fees.
You improve your credit history.
It tracks your spending.
Which will not help you earn more interest in a savings account?
A high interest rate
Withdrawing money from the account on a regular basis
Keeping your money in the account for a long time
Depositing money into the account on a regular basis
What three variables determine how much interest a person could earn from a savings account?
Place, interest rate, time invested
Amount, place, time invested
Amount, interest rate, place
Amount, interest rate, time invested
What is a 529 account?
A retirement savings account
A health savings account
A college savings account
A tax-free savings account
What is a "want" in terms of budgeting?
Something you need to survive
Something you would like to have but don't need
Money
A type of expense
What is an expense?
Money you save
Money you earn
Money you spend
Money you find
What does it mean to "live within your means"?
To spend more money than you have
To only spend the money you have
To borrow money regularly
To ignore your expenses
What should you do if you spend more money than you have in your budget?
Borrow money from a friend
Try to save more money next time
Adjust your budget to spend less in other areas
Nothing
