WorksheetsWayground - WB ch 3 Smart Savings and (KA) Unit 12 Banking 1-50
Total questions: 41
Worksheet time: 56mins
What is the main difference between a checking account and a savings account?
Savings accounts are generally used for spending money.
Checking accounts have higher interest rates.
Checking accounts are best for spending money.
There is no difference between checking and savings accounts.
What are savings accounts best for?
Spending money frequently.
Stashing cash.
Online shopping.
Direct deposit of paychecks.
What is a characteristic of savings accounts?
They are used for regular transactions like checking accounts
They typically have a monthly limit on withdrawals without a fee
They have no way to earn interest
They are primarily used for everyday spending
What should you look for when choosing a checking account?
An account that charges high maintenance fees
An account that offers no access to ATM networks
An account that doesn't charge a maintenance fee or has an easy way to waive it
An account that limits spending requirements
How do checking account interest rates generally compare to savings account interest rates?
They are generally higher than savings account rates
They are the same as savings account rates
They are generally lower than top savings account rates
They cannot earn interest at all
What should the best savings accounts offer?
High interest rates and monthly fees
Low interest rates and no online bank transfers
Strong interest rates, no monthly fees, and easy online bank transfers
Monthly service charges and limited withdrawals
What is one of the benefits of having both checking and savings accounts at the same bank?
Higher interest rates
Near-instant transfers between accounts
No federal insurance
Requirement of a minimum balance
What can help consumers avoid paying bank fees?
Keeping a minimum balance in the account
Being aware of the fees ahead of time and shopping around for options with fewer fees
Only using ATMs of the bank where the account is held
Closing the account and keeping cash at home
Which fee might be charged if you close a bank account soon after opening it?
Overdraft fee
Insufficient fund fee
Early account closing fee
Wire transfer fee
What type of fee could be incurred for making too many transactions from a savings account?
Out-of-network ATM fee
Excessive transactions fee
Overdraft fee
Wire transfer fee
What fee is charged as a result of not having enough funds in your account to cover a transaction?
Insufficient fund fee
Maintenance fee
Out-of-network ATM fee
Early account closing fee
What can be done to avoid insufficient fund fees or bounced check fees?
Sign up for notifications for low balance
Only use wire transfers
Close the account early
Transfer funds after the account is overdrawn
A bank keeps money safe until you need it.
True
False
What is a bank account?
A number the bank assigns to keep track of your money.
A form you fill out at the bank.
What is a deposit?
Money you take out of your account.
Money you put into your account.
How do you open a bank account?
Call the bank on the phone
Fill out an application.
How do you make a withdrawal from a checking account?
Write a check or use a debit card.
Fill out a deposit slip.
How do you balance your check register?
Add the deposits, debits, and withdrawals
Add the deposits and subtract the debits and checks
How often do customers typically receive a bank statement for their checking account?
Daily
Weekly
Monthly
Annually
FDIC Insurance is...
Optional coverage consumers can purchase so that their bank deposits remain safe.
Insurance bank branches can buy to protect their business against fraud and scams.
Required if you want to do online or mobile banking.
Protection for bank customers' deposits up to $250,000, guaranteeing their money is still available if the bank goes out of business.
Which TWO of the following statements are advantages of online banking?
Once you set up online banking, our bank will waive overdraft, ATM, and monthly fees.
With online banking, you can view your daily transactions and balances, rather than waiting for your monthly statement
Using online banking, you can request transfers, pay bills and automate your savings without visiting the bank branch
You can shop online only if your bank account has online banking features.
Jocelyn gets a text alert from the bank that her account balance has dropped below $100 after a series of $20 ATM withdrawals. She has not used her ATM in over a week and wonders what she should do. What would you recommend?
Wait until your monthly statement arrives so you can check to see if those withdrawals are still there.
Wait a week as it is fairly common for the bank to catch mistakes like this.
Check your wallet to be sure your debit card has not been stolen. If you still have it, then you should not worry.
Contact your bank immediately as it appears that your account may have been hacked.
Which of the following is a way to access the money in your checking account?
Taking out cash using your credit card at an ATM machine
Using your debit card to pay for groceries at the checkout
Depositing a paycheck at an ATM
Receiving a person-to-person payment from your friend
You deposit a birthday check by ising the bank app that you have on your smartphone. What is the standard amount of time that you will need to wait in order to get access to these funds?
Available immediately
Available the same day
Usually 1-7 business days later
30 business days
Fill in the blanks: Direct deposit typically refers to your __________ sending your _________ electornically to your bank account.
employer, bills
employer, paycheck
parents, allowance
state government, taxes
Which is an advantage of paying your bills using the online bill pay feature with your checking account?
The company you are paying receives the money on the same day.
There is typically only a small fee to set-up and use this feature.
It saves time and paper.
It eliminates late fees.
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
You are 18 years old, opening your first savings account, and are considering three opitions:
BANK A is not FDIC insured, has an interest rate of 5%, and a minimum deposit of $25.
BANK B is FDIC insured, has an interest rate of 0.01%, and a minimum deposit of $50.
BANK C is FDIC insured, has an interest reate of 0.02%, and a minimum deposit of $10,000.
All three have fees competitive with other banks. Which bank is the best option?
Bank A
Bank B
Bank C
All 3 are equally good options.
Which of the following is an effective strategy for personal saving?
Wait until the end of the month and save whatever is left in your checking account.
Save a certain percentage of each paycheck and deposit it directly into a savings account.
Cover all of your wants and needs and save whatever is left over.
Take out a payday loan so you can save before you received your paycheck.
Which represents the best time to start saving for your retirement?
As soon as you graduate and have your first full-time job.
Right after you pay off your student loans.
Once you are debt-free, including paying off all credit cards, auto loans, and your mortgage.
At age 45, so you have exactly 20 years until retirement.
Which of the following transactions may be missing when you go online to review your checking account balance?
ATM cash withdrawal from yesterday
Check that you mailed to your cousin for his birthday today
Automatic payment for your car loan paid two days ago
Debit card transaction from purchasing snacks at a local convenience store today
What is the main difference between checking and savings accounts?
Checking accounts offer limited access to avoid impulse buys
Savings accounts are designed for spending
Checking accounts pay higher interest rates
Savings accounts pay interest on balances
Do checking accounts come with any fees?
No, they are completely fee-free
Yes, they may have overdraft, ATM, and monthly maintenance fees
No, but they have high minimum balance requirements
Yes, but only for senior citizens
Should you have both checking and savings accounts?
No, only one account is necessary
Yes, but only if you have a high income
Yes, because they serve different purposes
No, it's better to have multiple checking accounts
Which letter represents where you find the check number?
B
C
D
E
Which letter represents where you would write out in words the amount of your check.
F
G
H
I
Which letter represents where you would write out in numbers the amount of your check.
C
D
E
F
If you had to pay your rent (due on May 1st) by check and your landlord lives out of town, which date would be wisest to put on your check and then mail it?
April 28th
April 29th
April 30th
May 1st
Which account is accessible from an ATM?
Checking
Savings
Both
The interest rate on a CD is __________ than that on a regular savings account.
Lower
Higher
Same
Does not earn interest
41-50.
Answer the questions below after watching the video
What should you not do with a check from your savings account?
Use it to pay rent directly
Deposit it into your checking account
None of the above
Write a memo asking to withdraw from savings
What is a primary feature of a checking account?
Ease of access for daily transactions
Limited access to funds
Investment tool
High interest rates
How can checking accounts be described in terms of transactions?
Ineffective for transactions
Highly effective for transactions
Not suitable for daily use
Only for investment purposes
What is not offered with a savings account?
Both A and B
Interest accumulation
A debit card
A checkbook
Why do savings accounts typically earn interest over time?
Because they are used daily
They are difficult to access
Funds are left untouched, allowing for wealth building
They have high transaction fees
What is the purpose of FDIC insurance?
To guarantee your savings earn interest
To insure against high transaction fees
To prevent unauthorized access to your account
To protect your money in case the bank fails
What is a major operational difference between checking and savings accounts from a bank's perspective?
Checking accounts are mainly for loans
Savings accounts fund the bank's loans
Checking accounts earn more interest
Savings accounts have higher fees
Why might checking accounts have fees that savings accounts do not?
Savings accounts actually have more fees
Because they earn more interest
Due to the potential for quick and unexpected withdrawals
Because they are used less frequently
What should you do if you need to pay your rent today?
Withdraw cash from your savings account
Transfer money to your checking account
Write a check from your savings account
None of the above
Why should you not attempt to write a check from your savings account for immediate expenses?
Savings accounts do not provide checkbooks
It's an effective way to manage daily expenses
None of the above
It's a convenient method for immediate payments
