Worksheetswetjidfjvnd c vs s
Total questions: 23
Worksheet time: 12mins
Which type of financial institution is member-owned and typically offers better rates and lower fees?
Commercial bank
Credit union
Online bank
Investment firm
What is a key limitation of online banks compared to traditional banks?
Higher fees
Lower interest rates
Limited physical locations
No FDIC insurance
What is the primary way banks make money?
Government subsidies
Interest rate paid from loans
Stock market investments
Customer deposits
What does FDIC insurance protect up to per depositor?
$100,000
$150,000
$250,000
$500,000
Which of the following would NOT typically appear on a bank statement?
Beginning balance
Credit score
Transaction details
Ending balance
Which of the following is a true statement about savings accounts?
They offer unlimited monthly transactions.
They usually earn interest rates unlike checking accounts.
They have no monthly fees.
They require no minimum balance.
Which savings option typically offers the highest interest rate but requires you to lock up your money for a specific period?
Regular savings account
High-yield savings account
Certificate of Deposit (CD)
Money market account
What is the recommended size for a full emergency fund?
1-2 months of income
3-6 months of living expenses
6-12 months of income
$10,000 regardless of expenses
What is the term used to describe the money you earn from a job before any deductions are taken out?
Net Income
Gross Income
Total Revenue
Disposable Income
What is another name for the total in your checking account?
deposit
void
withdrawal
balance
Which of the following best describes the purpose of an emergency fund?
To save for vacation
To invest in the stock market
To cover unexpected expenses
To pay for regular bills
Interest earned on a savings account is _____
the percentage of money you spend per month
the percentage a financial institution pays you to borrow your money
the percentage of your budget you spend
the percentage of your budget you don’t spend
Which of the following is typically a feature of a savings account but not a checking account?
Ability to withdraw money from an ATM
FDIC insured up to $250,000
Your money earns interest
Ease of making payments using a debit card
What is the purpose of an emergency fund?
Funding vacations
Covering unexpected expenses
Investing in stocks
Paying off credit card debt
Which account type is best suited for frequent everyday transactions?
Checking account
Retirement account
Money market account
Certificate of Deposit (CD)
What is a 401k?
A retirement account set up through your employer.
A savings account for emergencies.
A tax-exempt fund for higher education.
A piggy bank fund
Which is a budgeting rule.
The 40/30/30 budgeting rule recommends dividing your income into 40% for needs, 30% for wants, and 30% for savings or debt repayment.
The 60/20/20 budgeting rule recommends dividing your income into 60% for needs, 20% for wants, and 20% for savings or debt repayment.
The 70/20/10 budgeting rule recommends dividing your income into 70% for needs, 20% for wants, and 10% for savings or debt repayment.
The 50/30/20 budgeting rule recommends dividing your income into 50% for needs, 30% for wants, and 20% for savings or debt repayment.
What is the main advantage of setting up automatic transfers to a savings account?
It helps you save consistently without having to remember each month.
It allows unlimited withdrawals.
It increases your spending power immediately.
It reduces the interest you earn.
What is a common feature of checking accounts that is not typically found in savings accounts?
Limited monthly transactions
Ability to write checks
Penalty for early withdrawal
Higher interest rates
Why is it important to review your bank statement regularly?
To avoid paying taxes
To increase your account's interest rate
To find new investment opportunities
To ensure all transactions are accurate and detect any unauthorized activity
When do we want to earn interest ?
Savings Account
A Loan
At the beginning of this month, the balance of Vance's checking account was $697.96. So far this month, he has received a paycheck via direct deposit of $962.88, been charged a monthly service fee from his bank of $25.00, used a debit card linked to his account to make a purchase of $83.12, written a check for $138.83 that has already been deposited, and deposited a check written to him for $71.17. What is the current balance of Vance's checking account?
$1620.38
$1510.06
$1485.06
$787.10
June Russell, who has a checking account at Gravy Train Bank, is writing a check to Stanley Lawrence, who has a checking account at Chunk a Change Bank. What should be written on the "Pay to the order of" line of the check?
Chunk a Change Bank
Gravy Train Bank
June Russell
Stanley Lawrence
