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Banking Unit Review

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  • When should you start saving for retirement?
    After all debt is gone
    First full-time job
    After student loans are paid
    At age 45
  • Jocelyn sees ATM withdrawals she didn’t make. What should she do?
    Check if her card is still in her wallet
    Call the bank right away
    Wait for her monthly statement
    Wait a week, the bank might fix it
  • What is FDIC insurance?
    Protects deposits up to $250,000 if bank fails
    Needed for online banking
    Extra coverage you can buy
    Insurance banks buy
  • You have $10 in your account. You spend $12 for lunch, $12 for a movie, and $15 for dinner with overdraft coverage. What happens?
    Your account closes
    Bank gives you 5 days to repay, no fees
    Bank denies your card
    You pay overdraft fees and must repay the bank
  • Which best describes a savings account?
    Comes out right away when you use a debit card
    Lets you do unlimited transactions
    Pays interest to help your money grow
    Easy way to pay bills and get cash
  • Which is NOT true about prepaid cards?
    They build credit
    They often have fees
    They work in most places debit/credit cards work
    They help people without banks shop online
  • Fill in the blanks: If inflation is ______ than your savings rate, you are ______ power
    Higher, gaining
    Equal, gaining
    Higher, losing
    Lower, losing
  • You have $10 and spend $12 for lunch, $12 for a movie, and $15 for dinner with NO overdraft coverage. What happens?
    Account closes
    You are charged overdraft fees
    Card is denied, no overdraft allowed
    Bank gives you 5 days to repay, no fees
  • What is the main use of a digital wallet like Apple Pay?
    Use your bank’s app
    Send money to friends
    Pay businesses without cash or card
  • How much should you have in an emergency fund?
    3–6 weeks of expenses
    3–6 days of expenses
    3–6 months of expenses
    3–6 years of expenses
  • Michael makes $700 each month. How much should he save if he follows the 50-20-30 rule?
    $700
    $40
    $70
    $140
  • Direct deposit usually means your ______ sends your ______ to your bank.
    Parents, allowance
    Government, taxes
    Employer, bills
    Employer, paycheck
  • Aunt Tina says her family is living paycheck to paycheck. What does that mean?
    She and her husband get paid on different months
    She only gets paper checks
    They have high-paying jobs and don’t worry
    They have no savings and only cover bills
  • What is the best way to save money?
    Buy what you want first, then save what’s left
    Save only what is left at the end of the month
    Take out a loan
    Save part of each paycheck and put it in savings
  • Which is a benefit of online banking?
    No fees after you sign up
    You can only shop online with it
    You can move money, pay bills, and save online
    Higher interest
  • Which is NOT true about bank accounts?
    FDIC insurance protects money up to a limit
    Banks may pay interest on savings
    Money in checking is easy to use
    Savings accounts earn more than the stock market
  • How often do people usually get a checking account statement?
    weekly
    yearly
    monthly
    daily
  • The 50-30-20 rule means:
    50% needs, 30% savings, 20% wants
    50% needs, 30% wants, 20% savings
    50% wants, 30% needs, 20% wants
    50% savings, 30% needs, 20% wants
  • When would you NOT use a money app like Venmo?
    Friends paying each other for rent
    Pay a neighbor for breaking a window
    Paying back a coach for team fees
    Buying a pizza on a company website
  • Which list shows short-, medium-, and long-term goals?
    Retirement, house down payment, college
    New phone, dinner with friends, new bike
    New phone, college, house down payment
    Retirement, college, vacation
  • You buy groceries with a debit card. Where does the money come from?
    Cash advance from credit card
    Your savings account
    Credit card company pays
    Your checking account
  • Which action lowers your checking balance right away?
    Using debit card for groceries
    Depositing a check
    Writing a rent check to mail later
    Using a credit card for books
  • Why might someone pick an online savings account instead of a bank savings account?
    Online accounts stop identity theft
    Online accounts are only for people under 25
    Online accounts insure more money
    Online accounts usually pay more interest
  • Which is NOT a problem with being unbanked?
    Wasting time paying bills
    Hard to pay without cash
    No credit access
    No bank fees
  • Juan saved $1,000. He won’t need it for years and wants the most interest. Which account is best?
    Regular savings
    Certificate of Deposit (CD)
    Money Market
    Checking
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