Checking and Banking Review

Credit Cards

100

You are actually borrowing money from a credit card company when you purchase something using a credit card

True

200

A credit card company will send you a bill how many times per month?

Once or every 30 days

300

What is an example of a credit card company/provider?

American Express, Discover, Mastercard

400

What is the money that you pay for every dollar that you spend? Usually represented by a percent. When you sign up for a credit card, this is the __________ rate that you will pay per month.

Interest

500

True or False: The most responsible way to pay off a credit card bill is to pay the most you can every month.

True

Debit Cards

100

Who distributes debit cards? Companies or the bank?

The bank

200

What have debit cards taken the place of?

Written Checks

300

True or false: Banks will charge you a fee for having a low balance in your checking account if you have a debit card.

False- banks will only charge you a fee on savings accounts

400

When you purchase something with your debit card, the money you spend does not come out of your account until the end of the week. True or False

False: the money comes out of your account immediately

500

When you use your debit card, you are taking money out of which account? savings or checking

Checking Account

Vocabulary

100

What is the word that means adding money to your checking or savings account?

Deposit

200

What is it called when you take money out of your checking or savings account? Also known as any time you have an interaction with a bank.

Transaction

300

What is it called when you take money out of your checking or savings account?

Withdrawal

400

When you have less money in your checking account than you actually spent. You are spending more than you have. What is that money known as? You will bounce a check when this happens

Insufficient funds, Non sufficient funds

500

What is the amount of money that you have in your bank account?

Balance

Savings Account

100

True or False: Savings accounts are knows as withdrawal accounts

False: savings accounts are knows as deposit accounts because you should be putting more money in the account than you are taking out.

200

The number of ______________ (taking money out of the account) is limited with a savings account or you will be charged a fee.

Withdrawals

300

The primary purpose of a savings account is to spend money for everyday things like bills. True or False

False- the purpose of a savings account is to save money

400

What happens when you have a low balance (below the balance the bank requires) in your savings account?

The bank will charge you a fee

500

You should use a savings account for things that you WANT to buy, not things that you NEED. True or False

False- you should use a savings account for things like new tires or medical bills. Similar to an emergency fund

Checking Accounts

100

Money in your checking account should be used for emergencies only. True or False

False- checking account money should be used for everyday things, like bills or money to go out to dinner

200

The money that you get out of the ATM comes from this account: checking or savings

Checking

300

You can take money out of your checking account _________ many times per month

Unlimited- you can take money from your checking account as many times as you want every month

400

What happens when you spend more money than you have in your checking account?

You bounce a check/ your debit card will be declined

500

True or False: you should NOT record debit card purchases in your check register

False: Money you spend on your debit card comes from your checking account which should be recorded in your check register.