Banking Unit Flashcards

Front

TRUE or FALSE: People who are unbanked are likely to have low income.

Back

TRUE

Front

TRUE or FALSE: Overdraft protection allows you to withdraw more money than you have in your account.

Back

TRUE

Front

What is the main difference between banks and credit unions?

Back

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

Front

Which of the following is NOT a common way most people are using P2P, such as Venmo?

Splitting bills with friends

Paying rent or utilities

Sending money to family members

Investing in stocks

Back

Investing in stocks

Front

TRUE or FALSE: You can protect your checking account by never monitoring the account and letting money fluctuate based on your spending.

Back

FALSE; you should monitor your checking account to ensure there are no transactions you haven't made.

Front

How does interest in saving accounts differ from interest in checking accounts?

Back

Saving accounts have higher interest rates than checking accounts.

Front

TRUE or FALSE: High-Yield Savings Account (HYSA) have significantly higher interest rates than traditional savings accounts.

Back

TRUE

Front

_________ is a type of savings account that typically pays a slightly higher interest rate than regular savings accounts and allows the use of a debit card.

Back

Money Market Account

Front

________a savings account that requires a deposit of fixed amount of money for a fixed period of time or term; penalty for early withdrawal.

Back

Certificate of Deposit (CD)

Front

________ is interest earned only on the principal, which is the amount of money originally deposited.

Back

Simple Interest