Vocabulary
Name at least TWO parts of a check?
The address, the name, the account name, the account number, the memo line, the pay to order line, the money written out, the signature line.
Moving money from one of your accounts to another
Transfer
What is a cognitive bias?
A systematic error in beliefs or decision-making that everyone can suffer from. These are natural errors that result from the way that human beings are "built".
What does the FIDC do?
Guarantees the availability of deposits in in accounts, up to certain limits.
Anxiety that an exciting or interesting event may currently be happening elsewhere is known as....
Fear of Missing Out (FOMO)
Fixed expenses include things like rent, insurance, and utility bills.
TRUE
What is a checking account?
Money kept for every day expenses. The amount is expected to change frequently, and you usually have to pay a maintenance fee to have it.
What is an overdraft?
Spending more money than you have in your account.
When people prefer avoiding losses over acquiring gains, this is called...
Loss Aversion
Extra money that you either earn or owe from a loan or savings deposit.
Interest
When making a budget, you should only worry about your income and your expenses.
FALSE
Which kind of banking account usually requires a maintenance fee.
A Checking account.
When someone avoids quitting something because they have invested, even when quitting would be better.
Sunk Cost Fallacy
An I.O.U. that you pay later.
Credit or Debt
Why is it important to be careful when using credit cards? Explain your answer.
[There are many correct answers.]
Why don't banks charge maintenance fees for savings accounts?
Because they use the money in the accounts to make loans to other people.
The tendency to seek out and prefer information that supports our preexisting beliefs is called...
Confirmation Bias.