Banking Test Review

Front

People who are unbanked are most likely to...

Back

Have a low income

Front

Which of the following is TRUE about banks and credit unions?
Banks are for-profit institutions, while credit unions are non-profit
Banks offer higher interest rates on savings accounts than credit unions
Credit unions are insured by the FDIC, while banks are not
Banks are owned by their customers, while credit unions are owned by shareholders

Back

Banks are for-profit institutions, while credit unions are non-profit

Front

How can you protect your checking account when using online and mobile banking? Options: Use strong and unique passwords, Avoid using public Wi-Fi networks, Regularly monitor your account activity, All of the above

Back

All of the above

Front

Which is NOT a typical goal for a savings account? Saving for retirement, Saving for a down payment on a house, Saving for a vacation, Saving for a new car

Back

Saving for retirement

Front

What are some reasons for why so many Americans live paycheck-to-paycheck? Low wages, High cost of living, Lack of financial education, All of the above

Back

All of the above

Front

How does the 50-20-30 rule distribute your income?

Back

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

Front

How is compound interest different than simple interest?

Back

Compound interest is calculated more frequently.

Front

Saving accounts differ from checking accounts in that...

Back

Saving accounts have higher interest rates

Front

What does the National Credit Union Administration (NCUA) define as insufficient funds?

Back

The lack of enough money in an account to pay a particular check or payment.

Front

We will need years to accumulate enough money to move to Norway. He should probably open a:

Back

Savings account