Vocab
Compound interest is:
A) Interest calculated only on the initial amount deposited
B) Interest calculated on both the principal and previously earned interest
C) A fee banks charge for late payments
D) A type of debit card
B) Interest calculated on both the principal and previously earned interest
Which of the following is a benefit of a traditional savings account?
A. High interest rates
B. Easy to open and FDIC insured
C. Unlimited withdrawals
D. No minimum balance requirements
B. Easy to open and FDIC insured
What is a major advantage of an online savings account?
A. Physical branches in every city
B. High interest rates and low fees
C. Unlimited in-person customer service
D. Requires large minimum balances
B. High interest rates and low fees
What is one benefit of a money market account?
A. It combines check-writing privileges with higher interest
B. It has unlimited withdrawals
C. It is not FDIC insured
D. It requires no minimum balance
A. It combines check-writing privileges with higher interest
What makes a CD different from a regular savings account?
A. Money can be withdrawn anytime without penalty
B. It offers a fixed interest rate for a set period
C. It’s not insured by the FDIC
D. It has lower interest than savings accounts
B. It offers a fixed interest rate for a set period
Credit is:
A) Money borrowed or the ability to borrow money
B) Money added to your account
C) A fee for using a bank service
D) An emergency savings account
A) Money borrowed or the ability to borrow money
What is one disadvantage of a traditional savings account?
A. It’s unsafe
B. It offers high interest rates
C. It can’t be used for emergency savings
D. It often has low interest and monthly fees
D. It often has low interest and monthly fees
What is a drawback of online savings accounts?
A. Low interest rates
B. No mobile app access
C. No physical branches and slower transfers
D. FDIC insurance not available
C. No physical branches and slower transfers
What is one con of a money market account?
A. No debit card access
B. Higher minimum balance and transaction limits
C. Not available at banks
D. No interest earned
B. Higher minimum balance and transaction limits
What is one disadvantage of a Certificate of Deposit (CD)?
A. Interest rates constantly change
B. There is a penalty for early withdrawal
C. It is not safe or insured
D. It has no set term length
B. There is a penalty for early withdrawal
An overdraft fee is:
A) A fee charged when you withdraw more money than your account balance
B) Interest earned on savings
C) A fee for depositing money
D) A loan payment
A) A fee charged when you withdraw more money than your account balance
Who is a traditional savings account best suited for?
A. Someone who wants to invest in the stock market
B. Someone who wants to earn the highest interest
C. Someone who wants a simple, safe place to store money
D. Someone who travels internationally
C. Someone who wants a simple, safe place to store money
Who would benefit most from an online savings account?
A. Someone uncomfortable with technology
B. Someone who needs in-person banking
C. Someone who’s tech-savvy and wants higher interest
D. Someone saving only cash at home
C. Someone who’s tech-savvy and wants higher interest
Who would benefit most from a money market account?
A. Someone saving for short-term goals like a car
B. Someone who never wants to touch their money
C. Someone who prefers physical cash only
D. Someone who needs unlimited ATM access
A. Someone saving for short-term goals like a car
Brianna wants an account that pays a higher interest rate but still lets her write checks or use a debit card when needed. She can also maintain a higher balance.
Which type of account would be best for her?
A. Money Market Account
B. Certificate of Deposit
C. Traditional Savings Account
D. Online Savings Account
A. Money Market Account
A transaction fee is:
A) Money added to your savings account
B) Interest paid on a loan
C) A fee charged for making a banking transaction
D) A reward from using a debit card
C) A fee charged for making a banking transaction
Maria just started her first job and wants a simple, safe place to keep her money. She likes being able to visit her local bank and isn’t worried about earning a lot of interest right now.
Which account is best for Maria?
A. Money Market Account
B. Online Savings Account
C. Traditional Savings Account
D. Certificate of Deposit (CD)
C. Traditional Savings Account
Kayla prefers doing everything on her phone — from shopping to paying bills. She’s looking for a savings account with high interest and no monthly fees. She doesn’t mind not having a branch nearby.
What type of account should Kayla open?
A. Online Savings Account
B. Traditional Savings Account
C. Money Market Account
D. Certificate of Deposit
A. Online Savings Account
David opened a Money Market Account but noticed a monthly fee on his statement. After checking, he realized his balance dropped below the minimum required amount.
What caused the fee?
A. Too many withdrawals
B. Low balance below the requirement
C. Using his debit card too often
D. Earning too much interest
B. Low balance below the requirement
Marcus put his money in a 3-year CD but now needs to withdraw it early for an emergency. What will most likely happen?
A. He will earn a bonus interest
B. He will pay a penalty fee
C. His account will close without any charges
D. He will lose his FDIC protection
B. He will pay a penalty fee
A minimum balance is:
A) The amount borrowed from a bank
B) The minimum amount you must keep in your account to avoid fees
C) The interest earned on deposits
D) The maximum amount allowed in a bank account
B) The minimum amount you must keep in your account to avoid fees
Jordan keeps $500 in his savings account for emergencies. He noticed he only earned a few cents in interest this month.
What is the most likely reason for that?
A. His account has a low interest rate
B. He withdrew too much money
C. His account is not FDIC insured
D. His account is an online savings account
A. His account has a low interest rate
Luis has an online savings account but needs to transfer money to his checking account for a big purchase. He notices it will take a couple of days for the transfer to go through.
What is this an example of?
A. FDIC insurance limits
B. A disadvantage of online savings accounts
C. A penalty fee for withdrawal
D. Poor mobile app design
B. A disadvantage of online savings accounts
Tiana received $5,000 from her tax refund. She wants to save it safely and doesn’t plan to use it for at least two years. She also wants a fixed interest rate.
Which account fits Tiana’s goals?
A. Money Market Account
B. Online Savings Account
C. Certificate of Deposit (CD)
D. Traditional Savings Account
C. Certificate of Deposit (CD)
Who should consider opening a CD?
A. Someone who wants a guaranteed return and won’t need the money soon
B. Someone who needs to use their money frequently
C. Someone who prefers online banking
D. Someone saving for a short vacation
A. Someone who wants a guaranteed return and won’t need the money soon