Banking Unit Test

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Juan saved $1,000 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

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Certificate of Deposit

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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

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

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30 months

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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

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

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All of the following are true about prepaid cards EXCEPT…
Prepaid cards typically include a lot of fees
Prepaid cards are a useful option for someone who is unbanked to make online purchases
Prepaid cards are a great way to build credit
Prepaid cards are usually accepted anywhere that debit and credit cards are accepted

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Prepaid cards are a great way to build credit

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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

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

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Which represents the BEST time to start saving for your retirement? Options: As soon as you have your first full-time job, Right after you pay off your student loans, Once you are debt-free, including paying off all credit cards, auto loans, and your mortgage, At age 45, so you have exactly 20 years until retirement

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As soon as you have your first full-time job

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The primary purpose of which of the following is to enable contactless transactions with businesses?
Options:
NFC technology,
Barcode scanners,
Magnetic stripe cards,
Manual cash registers

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NFC technology

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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

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Online savings accounts typically pay higher interest rates on deposits

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Which statement best describes a savings account? 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

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