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Consumers Ed Banking and Saving Review Flashcards | StudBud
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Consumers Ed Banking and Saving Review
Consumers Ed Banking and Saving Review
27 terms
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#ConsumersEd #Banking #Saving
Flashcards
27 cards
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Questions
27
Answers
1
What does NCUA stand for?
National Consumers Union Association
National Childcare Union Association
Never Crediting University Associates
National Credit Union Association
2
What does it mean for a check to be outstanding?
WOW that's a lot of money!
A fine for spending too much money
Winning the lottery and screaming "OUTSTANDING"
The check has not yet been cashed
3
"Liquidity" when considering where to save/invest means
How easily can I access my money?
How likely am I to get all my invested money back?
How much will my money earn?
4
What is a Cashier's Check?
Pays for products or services in advance
Endorsed by the person depositing it at the grocery store
A check guaranteed by the bank
Check given by a customer at a store
5
"Safety" when considering where to save/invest means
How easily can I access my money?
How much will my money earn?
How likely am I to get all my invested money back?
6
Which of the following is true about the FDIC?
Insures your money left under your mattress
Earns money through the stock market
Insures each person up to $500,000
Insures your deposited money in the bank
7
"Pay to the Order of Jill Pagels" with "Teri Wilson" written below is an examples of what?
Restrictive Endorsement
Blank Endorsement
Special Endorsement
Personal Endorsement
8
What would be better: Interest Compounded Annually or Interest Compounded Weekly?
Annually
Weekly
9
Banks offer every customer the same interest rate
False
True
10
Which of the following is NOT an example of a Commercial bank?
Chase
Citibank
ISU Credit Union
Bank of America
11
Which of the following is NOT why businesses may be reluctant to accept a temporary check
You just opened your account
They might not trust you have enough money in your account
You are younger than 20 years old
12
Financial Institutions are in the business of
Making money
Planning your finances
Giving money
Selling money
13
FDIC stands for
Funds Directed Into Checking
Federal Deposit Insurance Corporation
Federal Directly Insuring Customers
Food Directed Into Mouth
14
The video clip shows an example of a
Disadvantage of using credit cards
Advantage of using credit cards
15
What does the NCUA do?
Insures your credit score
Insures your money up to $350,000
Insures your money hidden under your mattress
Insures your deposits at credit unions
16
What does ATM stand for?
Automated Teller Machine
Automatically Transfers Money
17
A Certificate of Deposit is sold by banks, thrift organizations, and credit unions
True
False
18
CD's interest rates are the highest because they're considered risk-free
True
False
19
Depositing your money in a CD means you can't take out the money for a specific amount of time
False
True
20
What is a CD (in terms of finances)
Taylor Swift playing in my car
Certificate of Deposit
Certificate of Dollars
Compact Disk
21
Money in checkings or savings accounts can be withdrawn at any time
False
True
22
This helps secure your transactions made with a debit card
Endorsement
Electronic Funds Transfer
Blank endorsement
Personal Identification Number
23
It is illegal to pay for things over the internet
False
True
24
A reasonable goal is to save ___ % of your income
3%
50%
10%
15%
25
Interest that is compounded means what?
Your interest rate is being lowered
Your earned interest (earned money) is gaining interest
This is a bad thing
Your money is being insured at the same rate every year
26
The correct formula for the Rule of 72 is
72/9 = 9
Interest rate/72 years = Time
72/Interest Rate = Time in months for money to double
72/Interest Rate = Time in years for money to double
27
Direct deposit means
Directly depositing your paycheck into the ATM
You give your pay-stub directly to the bank teller
Money taken out of your checking account & put into savings
Your paycheck is transferred into your account from employer
