Banking
What is bookkeeping?
keeps the books for the bank, handles taxes, purchasing
What is credit?
The system of borrowing and lending money
When developing a savings plan, which is TRUE about saving and inflation?
A) In order to avoid losing purchasing power over time, the rate of return for savings accounts should be at least as high as the rate of inflation
B)In order to avoid losing purchasing power over time, the rate of return for savings accounts should be lower than the rate of inflation
C)To maximize saving, the rate of return for savings accounts should be exactly equal to the rate of inflation
D) There is no relationship between saving and inflation
A
What might be the benefit of setting up a recurring payment through online bill pay?
You can set up online bill pay as a recurring payment so you don’t have to remember the bills yourself
What is a teller?
most visible, handles daily transactions with customers
What is the accounting department?
Handles customer service accounting, balances accounts, works with the federal reserve bank
List 3 factors of your credit score.
Credit History, Amount Owed, On-time payments, credit inquiries, and Types of credit
True or False: When calculating the percentages for each budget category, you should use your pre-tax income
False
What are the benefits of using direct deposit?
Time saving and quicker access to your pay
What is a Customer Service Representative?
open accounts, set up IRA's, help with account services
What does the FDIC Stand for?
They protect your money if the bank gets robbed.
What are three things that could hurt your credit score?
victim of identity theft, late payments, high balance on credit cards, more
How much money should you try to save in your emergency fund?
3-6 Months worth of expenses
24/7 access and more quick than banks.
What is a loan officer?
Loans money to people for homes, cars, and businesses
State the difference between a checking and savings account.
Checking is meant for daily usage and savings is for depositing money and earning interest.
What are 3 things that you can do to improve your credit?
make on-time payments, keep debt to a minimum, be careful with your information
How can credit cards make it more challenging to save?
Credit Cards make it easier to spend money.
Why is it recommended that you avoid doing online banking on public Wi-Fi?
You can’t be sure who can see what you’re sending online.
You can’t be guaranteed that your important information is encrypted on a public Wi-Fi network
What are the three types of banks?
Community, Regional, International
Why do banks offer different types of accounts to their customers?
The needs of the customers differ from each other.
Why does credit matter?
Answers may vary
Why does it make sense to start saving or investing right now?
The sooner a person starts, the longer the money invested or saved has to grow. Every day that you wait is less opportunity for your money to compound.
How can turning on text and email alerts help keep your account safe?
If any large or suspicious transactions hit your bank account, the alert will let you investigate and fix any issues quickly
What information will you need to provide to your employer to set up direct deposit?
Your bank’s name, your account number, and the bank’s routing number. Alternatively, you can give them a voided check which has all of this information on it.