personal finance 1st test

People who are unbanked are most likely to be

Incur lots of fees at Check Cashers to access their money

Overdraft protection

Can keep you from overdrawing but charges a high fee

Which of the following is true about banks and credit unions

Banks are for profit/credit unions are not for profit

Which of the following is not required to open a checking account

You or your parents previous years tax returns

Which of the following is not a common way most people are using P2P (Venmo)

To pay off credit cards

What feature is the least important for a college student to look for in a checking account

Interest rate

Which of the following is false about check registers

You can submit them to the bank and verify each transaction

What is a typical overdraft fee

$25

How can you protect your checking account when using online and mobile banking

Use a strong password/connect to a secure WIFI network

You have $30 in your acct. How can a bank reorder 4 checks written today to maximize your fees?

$35 check, $7.50 checks written, $5 check, $15 check

Why is understanding a bank’s fees particularly important for students or young adults

With less banking experience they may incur fees unknowingly

Which is not a typical goal for savings account

To buy groceries for this week

What is a 529 account

A tax exempt fund that lets your savings grow for school

About how much should you save in an emergency fund

3-6 months of living expenses

What are some reasons for why so many Americans live paycheck to paycheck

Many people impulse shop

How does the 50-20-30 rule distribute your income

50% expenses, 20% saving, and 30% flexible spending

How is compound interest different from simple interest

It is simple interest + interest earned on that interest

How does inflation impact the money in your savings account

The purchasing power of your money decreases over time

Assuming a rate of growth of 8% in how many years will your $ double

9 years

Savings a counts differ from checking accounts in that

Money in a savings account can be used to fund a banks loans