Banking
What are the two types of banking accounts?
1. Checking account
2. Savings acount
What is FOMO?
FOMO is defined as the “fear of missing out”.
What is debt?
Something owed
Who is the underwriter and what does it do?
Receives Premium in exchange for covering potential financial losses.
What is investing?
Putting money into something to make a profit overtime.
Which banking account includes fees and no interest?
The checking account features includes fees and no interest.
What does “fixed” mean?
Fixed is the ability to stay the same or not change.
What does a Debit Card do?
Debit cards deduct money directly from the bank account for your use.
What are the three types of insurance?
Auto, health , and renters.
What is the difference between bull market and bear market?
Bull market increases and bear market decreases.
What percentage should you save in a banking account?
You should save 20% of your income.
What is 50/20/30?
50/20/30 is a strategy to saving:
1. 50% income to your needs
2. 20% of your income to your savings
3. 30% of your income to your wants.
A credit report is…?
A credit report is a document with information about a person’s credit activity and history.
What is not included in renters insurance?
Flood coverage.
What is the difference between stock and a bond?
A stock is ownership in a company; a bond is a loan to a company or government.
Lauda has just opened a new checking account, and the bank offers a free debit card, but she’s unsure about the fees. She wants to avoid hidden charges. What should Laura look for in her checking account terms to avoid unexpected fees?
Laura should review her account terms for any fees related to minimum balance requirements, overdrafts, ATM usage, or monthly maintenance fees. She should also check for any fees associated with out-of-network ATMs or using a debit card internationaly.
What is one of the four budget types?
Four types of budget:
1. 50/20/30
2. Pay yourself first
3. Zero based budget
4. Envelope budget
Emily recently applied for a car loan but was denied by the lender. She finds out that her credit score is 580, which is considered a low score. What are some possible reasons Emily’s credit score is low, and how can she improve it?
Emily’s credit score is low due to factors such as late payments, high credit card balances, or a lack of credit histor. To improve her score, she should make timely payments, reduce outstanding balances, and ensure she has a mix of credit types.
Difference between Medicare and medicai?
Medicare is for those over 65yo. Medicaid is for those of very low income.
What is the rule of 72 and how is it used?
A formula to estimate how long it takes for an investment to double (72/interest rate).
What are the three functions of money for banking?
1. Medium of exchange
2. Unit of account
3. Store of value
What is optimism bias?
Optimism bias is the discount of negative effects of a decision, and overestimating the positive ones
Jake has just received a credit card with a $5,000 limit. He uses the card to buy various items, but within the first month, his balance reaches $4,000. How does Jake’s credit utilization ration affect his credit score, and what should he do to avoid negatively impacting his credit.
Jake’s credit utilization ratio is 80%, which is considered high and could negatively affect his credit score. To improve his score, Jake should aim to keep his utilization below 30% by paying down his balance or requesting a higher credit limit.
Components of auto insurance coverage?
Liability, collision, comprehensiv, PIP, and uninsured motorist
Maya invests in a mix of stocks, bonds, and real estate. When the stock market drops, her overall portfolio doesn’t lose too much value. What investing strategy does Maya use?
Diversification