Banking Unit Test

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

All of the following statements about bank accounts are true, EXCEPT... a. If the bank is FDIC-insured, your money, up to the FDIC limit, is safe even if the bank fails b. Many banks pay interest on the money you deposit into your savings account c. Historically, savings accounts earn higher returns than investments in the stock market d. 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...
A new cell phone, college tuition, a house down payment

Back

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

Front

Fill in the blanks with the correct responses. 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 toward ____________, and 20% of your monthly income toward ____________.

Back

50% toward needs, 30% toward wants, 20% toward savings

Front

Which of the following is the correct order of financial priorities? Needs, wants, savings, Savings, needs, wants, Needs, savings, wants, Wants, needs, savings

Back

Needs, wants, savings

Front

Which statement best describes a savings account? Options: This account offers a convenient way to pay bills and access cash from an ATM, This account pays you interest on money you have put away for later to help your money grow, This account is automatically debited when you use a debit card, This account typically allows an unlimited number of transactions per month

Back

This account pays you interest on money you have put away for later to help your money grow

Front

You are at the checkout counter at the local supermarket and use your debit card to pay for your groceries. Where does the money for this purchase come from?

Back

It is deducted directly from your checking account

Front

Back

Contact her bank immediately as it appears that her account may have been hacked

Front

Which of the following transactions will REDUCE your checking account balance immediately?
- Writing your monthly rent check which you will mail tomorrow
- Using your debit card to pay for groceries at the supermarket
- Using your credit card to pay for your school books
- Depositing a check at a local bank branch

Back

Using your debit card to pay for groceries at the supermarket

Front

Which of the following statements is an advantage of online banking?
1. Once you set up online banking, your bank will waive overdraft, ATM, and monthly fees
2. Using online banking allows you to earn a higher interest rate
3. Using online banking, you can request transfers, pay bills and automate your savings without visiting the bank branch
4. You can only shop online if your bank account has online banking features

Back

Using online banking, you can request transfers, pay bills and automate your savings without visiting the bank branch