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NGPF Banking Unit Review Flashcards | StudBud
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NGPF Banking Unit Review
NGPF Banking Unit Review
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1
A bank statement is typically received...
Monthly
Weekly
Daily
Annually
2
Direct deposit typically refers to your employer sending your paycheck electronically to your bank account.
True
False
3
What is likely to happen when you DON'T HAVE overdraft protection?
The bank will give you 5 days to add funds and you won't be charged a fee.
Be charged an overdraft fee & will need to repay the amount overdrawn.
Your account will be closed.
The bank won't allow to overdraw your account & your card will be denied.
4
Don't need to access the money for a number of years & want to earn the highest interest rate. Pick the best account.
Certificate of Depost (CD)
Checking Account
Money Market Savings Account
Traditional Savings Account
5
Which a reason to check your bank statement regularly?
Fraudulent charges
Check your balance
Check for errors
All of the above
6
Which represents possible goals from short-term to long-term?
Retirement, house down payment, college tuition
New cell phone, dinner with friends, new bike
Retirement, college tuition, vacation
New cell phone, college tuition, a house down payment
7
What is likely to happen when you HAVE overdraft protection?
Your account will be closed.
The bank will give you 5 days to add funds and you won't be charged a fee.
Be charged an overdraft fee & will need to repay the amount overdrawn.
The bank will not allow you to overdraw your account.
8
Advantages of online banking, request transfers, pay bills, & automate your savings without visiting the bank branch.
True
False
9
If inflation is _________your savings account interest rate then you will be _________ purchasing power.
Lower than, losing
Higher than, gaining
Equal to, gaining
Higher than, losing
10
FDIC insurance protects customers depsoits up to $250,000 if the bank fails or goes out of business.
False
True
11
The BEST time to start saving for your retirement.
Right after you pay off your student loans.
As soon as you have your first full-time job.
At age 45, so you have exactly 20 years until retirement.
Once you pay off all credit cards, auto loans, and your mortgage.
12
When using a debit card money is deducted directly from your checking account.
False
True
13
Why is it important to start putting money away for retirement as early as possible?
Don't need to put as much money in a savings if starting at a younger age.
Don't have to play "catch up" and have to save more money as you age.
Accrue more interest if saved earlier.
All of the above
14
Savings account pays you interest on money you have put away for later to help your money grow.
False
True
15
Majority of americans do not have an emergency fund or money saved for retirement.
True
False
16
What does living paycheck to paycheck mean?
Receive a paycheck once a month.
Don't have money saved and paychecks are barely covering monthly expenses.
Have high paying jobs and don't worry much about money.
Only receive paper checks instead of direct deposit.
17
Experts recommend you accumulate enought to cover 3-6 months of expenses in your emergency fund.
True
False
18
Which are fees that banks typically charge on a checking account?
All of the above
Overdraft and ATM Fee
Monthly Service Fee
Minimum Balance Fee
19
Prepaid cards are a great way to build credit.
False
True
20
Effective strategy for personal saving.
Cover all of your wants and needs and save what is left.
Save a certain % of each paycheck and deposit it directly into a savings.
Take out a payday loan.
Wait until the end of the month and save whatever is left.
21
Which is NOT a downside of being unbanked?
Lack of fees associated with banks.
Lack of access to credit.
Difficulty making cashless purchases.
Lost time paying bills.
22
50-30-20 rule of budgeting means of your monthly income 50% goes towards need, 30% towards wants, & 20% towards savings
True
False
23
Savings options from highest expected interest rate to lowest expected interest rate.
Online savings account, 5-Year CD, Traditional Savings Account, 10-Year CD
Traditional Savings Account, Online savings account, 10-Year CD, 5-Year CD
Traditional Savings Account, Online savings account, 5-Year CD, 10-Year CD
10-Year CD, 5-Year CD, Online savings account, Traditional Savings Account
24
Using the automatic transfer feature can help you pay yourself first when trying to save money.
True
False
25
Historically, savings accounts earn higher returns than investments in the stock market.
False
True
