Consumer Economics Chapter 8 Test

Practice test answers

A bank can help you _____ your money and keep it _____.

Manage; safe

Some of the services banks offer include...

Mortgages, check writing, and debit cards

A savings account is for ___________.

Long-term savings goals

An easy way to avoid ending up with errors in your checking account is to simply...

Monitor you account at least twice a week

The Federal Deposit Insurance Corporation (FDIC) and National Credit Union Administration (NCUA) keep your money in the bank insured up to ______ per account.

250,000

Credit Unions differ from retail banks in that they typically require membership based on specific criteria.

True

Your emergency fund should go in your checking account, NOT a money market account.

False

If you see "pending" on an account charge, that means...

It hasn't been fully processed yet

Distrust, unemployment, and bank fees are a few excuses people give for...

Not having a savings or checking account

If you prefer great customer service and lower fees...

A small, local bank is often a great option

A debit card, ATM access, payroll direct deposit, and checks are basic features of ___________.

A checking account

If you see a charge you don't recognize, you should report it to your bank immediately.

True

People who are struggling with money often turn to alternative financial services like payday loans, but these services actually end up causing them to lose money.

True

With online banks, all of your deposits, transfers, and bill payments happen digitally, but...

It's often more difficult to get in touch with a real person when you need assistance

With certificates of deposit (CDs), you have to pay a penalty for ____________.

Withdrawing your money early

Verifying your bank's online account statements for accuracy is called ____________.

Reconciling your account

It's your responsibility to know about all of the _______ before choosing a bank.

Fees and services involved

You should avoid any bank service that leads to...

Debt

Liquidity is...

How quickly and easily you can access your money

Balancing your checking account is a lot like working on your budget because...

They both get easier and build money confidence the more you do them

Something that all of the predatory financial services have in common is...

You end up losing money with all of them

Banks invest their customers' deposited money and then...

Earn interest, paying the customer a small amount of interest on their accounts

When deciding on the right bank for you, you should first identify what type of bank you want, the features that matter most to you, and ____________.

What kind of accounts you want

As the owner of your account, managing your money is ______ responsibility.

Your

What does it mean to be blacklisted by a bank?

The bank doesn't allow you to open an account because you handled money poorly in the past and couldn't pass their financial background check.

Overdraft protection sounds like a good idea...

But you have to pay back the deposited money with interest

Make sure your bank has plenty of ______ and ______.

ATM locations; a mobile banking app

Overdrafting your account is a sign of diligence and responsibility.

False

A debit card linked with your checking account is a good option for regular spending.

True

You need to track everything that involves money, including...

Debit card purchases, third-party app transactions, and ATM withdrawals