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Money in checkings or savings accounts can be withdrawn at any time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