Chapter 7 & 8 Review

Having the bank deduct a certain amount from your checking account each month to pay a bill

• a fee.
• automatic withdrawal.
• a register.
• none of these.

The FDIC insures bank deposits in most banks up to a maximum of

• 175,000
• 100,000
• 150,000
• 250,000

Banks provide a place for you to keep your non-cash items (such as precious heirlooms and jewelry), which is also known as

• safe deposit boxes
• savings accounts
• deposit slips
• none of these

An electronic communication that moves money from an account in one bank to an account in a different bank is a

• safe deposit box.
• illegal transfer.
• wire transfer.
• none of these.

Currency is _______ money used for financial transactions.

• withdrawal
• a check
• interest
• paper/coin

The amount of money that a bank charges for loaning you money is called

• paper.
• a check.
• interest.
• withdrawal.

A bank's own personal check that is signed by the bank's cashier is a

• traveler's check.
• cashier's check.
• money order.
• certified check.

In order to make profit, when banks loan money they charge

• more interest than what they pay on amounts in savings accounts.
• less interest than what they pay on amounts in savings accounts.
• the same interest that what they pay on savings accounts.
• nothing.

The practice of trading current spending for the ability to spend in the future is known as 

• principal.

• interest.

• saving.

• investing.

Pick THREE ways in which people benefit from having saved.

• save for the unexpected (whammies)

• save for flexibility

• can't buy what you want when you want

• achieving your goals

• paying yourself