Unit 10 Review Part 2 Question Preview (ID: 33840)
Unit 10 Review Part 2.
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How much money would Matt have in 5 years if he deposited $100 into a savings account and his bank pays a 5% APY in simple interest on savings accounts (assuming he doesn't deposit or withdraw any money in that period)?
a) $95
b) $105
c) $125
d) $150
Which of the following is a common way to access your money if you have a checking account?
a) Debit or ATM card
b) Withdrawal slip
c) Check
d) All of the above
Which of the following is TRUE of NOT having a bank account?
a) It is easier and cheaper to cash checks.
b) Your money will be safer.
c) It is much harder to pay your monthly bills.
d) All of the above
Why is filling out a signature card with a bank important?
a) It gives the bank automatic authorization to add people to your account.
b) It helps prove your identity.
c) It gives you free access to a direct deposit box.
d) It allows the bank to insure the money in your account.
These are bank employees that help customers manage their money on a day-to-day basis
a) FDIC officers
b) IRS auditors
c) Tellers
d) Lawyers
If you plan to use your money to pay expenses frequently, you will want to put it in a
a) checking account.
b) savings account.
c) money market account.
d) 401(k).
Which of the following is NOT a benefit of putting your money in a savings account?
a) Your money is safe.
b) Your money can make money by investing in stocks.
c) Your money can make money by earning interest.
d) Your money is available to you anytime you want.
What is a problem with putting your money in a money market account?
a) It doesn't earn as much interest as a standard savings account.
b) It requires a smaller minimum balance than a standard savings account.
c) There are a limited amount of transactions that are allowed each month.
d) All of the above
The Federal Deposit Insurance Corporation (FDIC) was established
a) after the Revolutionary War to help the country pay back war debts.
b) during the Vietnam War to compensate bank customers that lost funds that were used to support the war effort.
c) after the dot-com bubble to bring more business to banks so they could make larger profits.
d) during the Great Depression as a way to build consumers' confidence in banks.
Why is using a bank, or a similar organization, a better choice than a check-cashing store or payday loan store most of the time?
a) Check-cashing stores and payday loan stores require you have account before cash a check or take out a loan, banks don't
b) The fees are typically much higher at a check-cashing store or payday loan store than a bank
c) Banks are easier to find than check-cashing stores or payday loan stores.
d) All of the above
Which of the following typically insures credit unions in the United States?
a) The White House
b) The International Monetary Fund (IMF)
c) The Federal Deposit Insurance Corporation (FDIC)
d) The National Credit Union Administration (NCUA)
How much money would Matt have in 5 years if he deposited $100 into a savings account and his bank pays a 5% APY in compound interest on savings accounts (assuming he doesn't deposit or withdraw any money in that period)?
a) $103.48
b) $127.63
c) $138.48
d) $200.00
What is the principal amount of a savings account that will have $525 in it after it has accumulated simple interest of 1% APY for five years after it is created (assuming there are no additional deposits or withdrawals in that time period)?
a) $475
b) $500
c) $510
d) $550
If Susan deposited $1000 in an account that earns 6% APY in compound interest, how long would it take to double her money?
a) 6 years
b) 10 years
c) 12 years
d) 20 years
Why is time value of money important to savers?
a) It tells them that they should spend their money on nonessential items before essential items.
b) It tells them that if they have a choice between simple and compound interest for their savings accounts, choose simple
c) If tells them that if they have an option to receive money now or later, then it is better to have the money at a later date
d) It tells them that if they have an option to receive money now or later, then it is better to have the money now
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