Banking

Overdraft protection...

• Allows you to withdraw more money than you have in your account

• Protects your account from unauthorized transactions

• Helps you save money for emergencies

• Provides insurance for your deposits

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

What feature is the LEAST important for a college student to look for in a checking account?

• Low or no monthly fees

• Convenient ATM access

• High interest rates

• Online and mobile banking

What is a typical overdraft fee?

• $10

• $25

• $50

• $100

How can you protect your checking account when using online and mobile banking?

• Use strong and unique passwords

• Avoid using public Wi-Fi networks

• Regularly monitor your account activity

• All of the above

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

About how much should you save in an emergency fund?

• 1 month of expenses

• 3 months of expenses

• 6 months of expenses

• 1 year of expenses

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

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

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

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

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

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

How is compound interest different than simple interest?

• Compound interest is calculated on the initial amount only

• Compound interest is calculated more frequently

• Simple interest is calculated more frequently

• Simple interest is calculated on the initial amount only