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Banking Unit Review

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