Banking Unit Test Personal Financial Literacy FHS

Front

Juan saved $1000 from his summer job cleaning pools. Which of these account types would work best for him if he doesn't need access to the money for a number of years AND wants to earn the highest interest rate? regular savings account, money market account, checking account, certificate of deposit

Back

certificate of deposit

Front

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 receive your paycheck

Back

Save a certain percentage of each paycheck and deposit it directly into a savings account

Front

How long will it take Joelle to build her emergency fund if she saves 10% of her $4,000 monthly gross pay and her monthly expenses are $2,000, aiming for 6 months of expenses?

Back

30 Months

Front

All of the following statements about bank accounts are true EXCEPT:
If the bank is FDIC-insured, your money, up to the FDIC limit, is safe even if the bank fails.
Many banks pay interest on the money you deposit into your savings account.
Money in a checking account is usually easy to access via ATM, debit card or check.

Back

Historically, savings accounts earn higher returns than investments in the stock market.

Front

You are developing a savings plan and using short-, medium-, and long-term goals to motivate you. Which represents possible goals from short-term to long-term? Save for...

Back

A new cell phone, college tuition, a house down payment

Front

If you follow the 50-30-20 rule of budgeting, you'll be putting 50% of your monthly income toward _________________________, 30% of your monthly income towards _____________________, and 20% of your monthly income towards ____________________.

Back

needs, wants, savings

Front

Which represents the BEST time to start saving for your retirement?

Back

as soon as you have your first full-time job

Front

Which of the following statements is TRUE?
the majority of Americans have an adequate emergency fund
the majority of Americans have sufficient amounts of money saved for retirement
the majority of Americans have an adequate emergency fund, but do NOT have sufficient amounts of money saved for retirement
the majority of Americans do NOT have an adequate emergency fund or sufficient amounts of money saved for retirement

Back

the majority of Americans do NOT have an adequate emergency fund or sufficient amounts of money saved for retirement

Front

Experts recommend that you accumulate enough to cover 3 to 6 ___________________________ of expenses in your emergency fund.

Back

Months

Front

Which of these is a reason someone might choose to open an online savings account rather than a savings account at a traditional bank? Options: online savings accounts are FDIC insured to a higher limit, online savings accounts typically pay higher interest rates on deposits, online savings accounts are less likely to make you the victim of identity theft, online savings accounts are created specifically for people under age 25

Back

online savings accounts typically pay higher interest rates on deposits