U2 - Saving & Checking Accounts Review

Your money in a financial institution is insured up to $250,000 by the FDIC or NCUA.

• $250,000

• $100,000

• $500,000

• $1,000,000

It is the responsibility of the bank to detect mistakes in your account.

• True

• False

Susie has had her job at Wal-Mart for 6 months and is eligible for their retirement program. Walmart will contribute up to 4% matching what Susie does.

What type of retirement account does Susie have? How much should she contribute? Why?

• Susie has a 401(k) account and should contribute 4% because that is what they will match. Any less and she won't receive her full "free" amount from the employer.

• Susie has a Roth IRA and should contribute $6,000 annually for tax-free growth.

• Susie has a Traditional IRA and should contribute $5,000 annually to reduce taxable income.

• Susie has a Pension and should contribute 25% of her income for maximum savings.

Type of financial institution that has set membership criteria needed to open an account is which of the following?

• Bank

• Credit Card

• Savings & Loan

• Credit Union

The measure of how prices will increase over time and therefore how quickly money loses its purchasing power is known as:

• Inflation

• Pay yourself first

• Liquidity

• Principal

When comparing saving accounts, a consumer should look for simple interest.

• True

• False

When a consumer is looking for a savings or retirement account, one should look for LOW interest rates.

• True

• False

19. Robert wants to get a savings account that earns interest, but he also wants the convenience of having a debit card. He understands he will be limited on the number of debit transactions he can make per month. What type of account should Robert get?

• Checking Account

• Savings Account

• Money Market Account

• Certificate of Deposit

It is recommended that you save 10% of your monthly income.

• 10% of your monthly income

• 5% of your monthly income

• 15% of your monthly income

• 20% of your monthly income

Which of the following takes money out of your checking account when used?

• Debit card

• Credit card