Consumer Economics Unit 4 - Banking/Savings Test

All of the following are steps to reach your savings goals EXCEPT:

APY is 4% and you have $1000 in the savings account, and no money is added to or withdrawn, the balance is $2000 when?

A characteristic of a certificate of deposit is an early withdrawal penalty will be imposed if take out your money early

An example of paying yourself first is asking your employer to deposit a portion of each paycheck into a savings plan

Which savings option is the least liquid?

Banks make a profit because interest paid to savers is generally greater than interest paid by borrowers.

The _____ requires financial institutions to disclose the annual percentage yield of accounts.

Simple interest is paid on both the money deposited and on the prior interest earned.

Writing a check is more secure than paying with cash because

A __is a purchased certificate from a post office, bank, or store used to pay a specific amount to a particular person

The annual percentage yield includes the effects of compounding.

For credit unions, deposit insurance is administered by the _______.

_______ checks are often required for very large purchases, such as the down payment on a home.

Lack of sufficient funds to cover the full amount of a check is called a(n):

One way to save is to authorize your employer to make payroll deductions.

___ can offer higher deposit rates & lower loan rates because they do not incur the costs of traditional banks

A ________ is a financial institution owned by shareholders and operated for their profit.

All of the money deposited in banks is kept on reserve.

What happens first?

If a savings account has a stated APY of 3%, the monthly interest rate is _______.

A written order that instructs a bank to pay a specific amount to a particular person or business is a:

The Federal Deposit Insurance Corporation will insure your money at a bank up to what amount?

What kind of endorsement should be used if you cannot get to the bank for a few days before cashing the check?

When putting money in a financial institution, it is best to keep which in mind?

The best way to determine which of two savings accounts will earn the most money is to compare their:

With a special endorsement, the only thing you write on the back of the check is your signature.

The person to whom a check is made out is the _______.

If your ATM card is lost, you should:

Savings account in which deposits are invested by the financial institution & typically yield higher earnings

A consumer who is saving for emergencies is best served with a highly liquid account.

_______ cards are also called store-value or gift cards.

Which type of endorsement is most commonly used?

All of the following are common reasons for saving EXCEPT:

If you do not report the loss of a debit card within ____, you may be liable for all charges made on the card.

Discretionary income is the amount of available income after taxes and necessary spending for food, clothing and shelter

At your request, banks can automatically perform which of the following services?

A one-year certificate of deposit will probably earn more interest than a five-year CD.

A financial institution that is owned by its depositors, who are all connected by a labor union would be an example of:

Which of the following is TRUE about savings bonds?

The recommended size of an emergency fund is ______ times your monthly net income.

All of the following will most likely happen if you bounce a check, EXCEPT:

Money transfer services, while helpful in an emergency, are relatively expensive.

A check from a personal checking account that has been stamped by the bank to guarantee that there are sufficient funds

Choosing a fixed amount to put into savings each time you get paid can help you stick to your savings plan.

If you make a mistake writing a check, you should: