WorksheetsUnit 2 Banking: Exit Ticket Checking Accounts
Total questions: 20
Worksheet time: 10mins
All of the following are reasons to open a checking account EXCEPT...
Making it easier to pay bills
The ability to make purchases with a debit card
Access to cash at an ATM
Earn interest on your deposits
Which of the following is usually a benefit of being a member at a credit union?
Higher interest rates and lower fees
Lower interest rates and higher fees
Higher interest rates and higher fees
Lower interest rates and lower fees
Daisy reads her bank statement and finds an error. She should...
Do nothing. The bank will correct the error at the end of the month.
Call the FDIC. She is insured up to $250,000.
Call the bank. The bank will investigate the transaction to see if it was an error.
Assume that it’s a transaction that she made and forgot about.
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
Tyreke has $5,000 to put into an account that earns compound interest. Which of the following is the BEST advice you can offer so that he can maximize interest?
It’s ok to open an account with a low interest rates as long as you deposit your money early
Deposit your money as early as possible in an account with the highest interest rate possible
Wait for interest rates to rise above 5%, otherwise compounding doesn’t have any effect
Compound interest will not have any effect at such a low dollar amount. Find different opportunities to earn interest on your savings.
Which of the following is TRUE when comparing savings accounts and certificates of deposit?
Savings accounts are FDIC insured while certificates of deposit are not
Savings accounts allow you to access your money at all times while certificates of deposit require your money to be left alone for a set period of time
Savings accounts typically have a higher interest rate than certificates of deposit
Both savings accounts and certificates of deposit allow you to deposit money at any time
Which of the following statements is TRUE about overdraft fees?
You are legally required to have overdraft protection for your account
They are charged if you fail to meet the minimum balance requirement
You are charged when more money is withdrawn from your account than it has available
They are a one-time payment made by the bank to the account holder
All of the following are ways that you could potentially avoid a monthly maintenance fee on your account EXCEPT...
Meeting a monthly minimum balance requirement
Only banking online instead of using physical bank locations
Having both a checking and savings account with the same bank
Finding a bank that offers accounts with no monthly maintenance fee
All of the following are ways to avoid ATM fees EXCEPT...
Avoiding out of network ATMs
Finding a bank that reimburses you for ATM fees
Using your debit card instead of withdrawing cash to make a purchase
Withdrawing money from your savings account instead of your checking account
Which of the following is a disadvantage of using a payroll card?
You cannot withdraw your money for cash
Many payroll cards charge fees
You cannot use your payroll card as a debit card
It is challenging to use a payroll card for purchases
All of the following are reasons that a person might be unbanked EXCEPT...
Not trusting the banking system
Not having enough available money to maintain an account
Not having a bank within close distance to your residence
Not having a credit card account from a traditional bank
Danielle is unbanked and is considering using a prepaid card. Which of the following would be BAD information to give her about prepaid cards?
Prepaid cards are a good way to build credit because they work like credit cards
Prepaid cards can have a lot of fees associated with them including transaction and loading fees
Prepaid cards are generally accepted anywhere that debit and credit cards are accepted
Prepaid cards are a viable way for the unbanked to complete online transactions
Unit 2 - Strategies to Save - Exit Ticket
Keon receives a $1,000 paycheck. According to the 50/30/20 rule, how much should he put aside for saving?
$200
$500
$300
$100
What is the minimum amount of money you should try to save in your emergency fund?
$100
$200
$500
$1,000
What is a major benefit of the Pay Yourself First strategy?
It helps you budget all of your income for the month
It encourages you to prioritize saving money
It is a good way to build credit
It generates additional income to cover essential expenses
How much money should you try to save in your emergency fund?
3-6 days worth of expenses
3-6 weeks worth of expenses
3-6 months worth of expenses
3-6 years worth of expenses
When developing a savings plan, which is TRUE about saving and inflation?
Inflation can reduce the value of your savings over time.
Inflation increases the value of your savings automatically.
Saving money protects you completely from inflation.
Inflation has no effect on savings.
In order to avoid losing purchasing power over time, the rate of return for savings accounts should be:
at least as high as the rate of inflation
lower than the rate of inflation
exactly equal to the rate of inflation
There is no relationship between saving and inflation
What does it mean to live paycheck to paycheck?
Saving a portion of your paycheck for emergencies
Having multiple sources of income to cover expenses
Struggling to cover your financial needs with each paycheck
Enjoying a comfortable lifestyle without worrying about money
How can credit cards make it more challenging to save?
Many banks will not let you open a savings account when you have a credit card
You will be charged a fee for every credit card transaction
Retailers mark up purchases if you use a credit card
Credit cards make it easier to spend money
