Banking Basics
Accounts, Cards, and Fees
Saving
Federal Reserve
Business Cycle
100

A for profit institution that keeps people's money safe and serves their shareholders.

Bank/Commercial Bank

100

This account is designed to manage daily spending through checks, debit cards, and ATM withdrawals.

Checking Account


100

Money earned on savings or charged for borrowing money.

Interest


100

The central banking system of the United States.

Federal Reserve (FED)

100

Used to describe the pattern of economic growth and decline over time.

Business cycle

200

A type of bank that offers more competitive interest rates and lower fees, and serves its members.

Credit Union


200

This account is designed to hold money for goals such as an emergency fund.

Savings account

200
Simple interest is only charged on the _______ amount

Principal

200
The "worst enemy" of a booming economy... this rises when spending and employment are high.

Inflation

200

The 4 phases of the business cycle

Expansion, peak, contraction, trough.

300

What is required to open a checking account at a bank? (3)

Photo ID, ITIN, Money to deposit.

300

Using this withdraws money from a checking account same as using cash or writing a check.

Debit Card

300

Interest charged or gained on interest accumulated.

Compound interest

300

The two "toolboxes" used by the federal government to stabilize the economy.

Fiscal and Monetary Policy

300

The phase of the business cycle when the economy is beginning to grow and recover from a recession/depression

Expansion

400
Two advantages of a credit union compared to a commercial bank

Lower interest and lower fees

400

Fee that is charged for using an ATM that is not in your network.

Out of Network Fee
400

Using the rule of 72, how long will it take for money to double at 8% interest?

9 years

400

When the economy is booming and employment is high, the federal reserve will _________ taxes.

Increase

400

The phase of the business cycle when unemployment is at its highest and spending is at its lowest.

Trough

500

This type of bank is more likely to have more available branches to do in person business with. 

Commercial Banks


500

Difference between a debit card and credit card

A credit card accumulates debt and interest when used, while a debit card withdraws automatically from checking account.

500

You invest $1000 at 10% annual interest for two years. What is your ending balance after 2 years with both simple and compound interest?

$1200 (simple), $1,210 (compound).

500

When unemployment is high and spending decreases, the Federal Reserve will __________ the reserve requirement.

Lower

500

Phase of the business cycle when a booming economy is beginning to decline.

Contraction
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