Financial Institutions
True or False: Credit Unions have more branches across the nation.
False.
What is the federal reserve?
The Federal Reserve System is the central banking system of the United States.
What is the 50-30-20 rule?
A way of organizing your money into 3 categories to keep track of savings and keeping yourself financially safe.
What are the four types of payment options?
Credit Card, Debit Card, Cash, and Peer-to-peer Payment Apps.
What is the purpose of a savings account?
To hold money and earn interest for a bigger cause than day-to-day access.
Which source has higher interest rates? Banks or Credit Unions?
Credit Unions.
Why is the federal reserve important to us?
It is responsible for managing monetary policy and regulating the financial system. They control many of the things that are important to regulate our income.
What should 50% of your money go towards?
Needs.
Who should you use PTP Payment options with?
Close Friends, family members, and people you trust with personal information.
What are the four types of savings accounts?
Traditional, Online, Certificate of Deposit, and Money Market.
Which banks have a physical building you can go to handle your banking needs? (National Banks, Credit Union, and Neobanks)
National Bank, Regional Bank, and Credit Union.
True or False: The reserve pays interest to banks.
True.
What should 30% of your money go towards?
Wants.
What are three tactics scammers use to trick you into using PTP Payment apps with them?
Emotional Appeal, Too Good to Be True, and Urgency.
How much money (from your income) should be invested in an emergency fund?
6 Months worth of income.
What are neobanks?
A neobank is a type of direct bank that operates exclusively online without traditional physical branch networks.
What three things do the federal reserve control?
Maximum employment, stable prices, and moderate long-term interest rate.
What should 20% of your money go towards?
Savings.
What are the three rules to follow when creating a PIN?
No patterns/repetition, no birthdays/major dates, Vary your PINs, Never share your PIN.
What is the typical interest rate for a typical savings account?
0.35%
Name the largest bank in the U.S.
The J.P. Morgan Chase Bank.
Who controls the federal reserve?
The board of governors.
Give an example of when you should break the 50-30-20 rule.
If something out of the ordinary happens with your money. (Emergencies, loss of job, ect.)
Name two Modern Day PTP Payment Apps.
Venmo and Cash app.
Which type of savings account is the only option which can write checks/pay bills directly from it?
Money Market Account.