Banking Unit

Question 1

What is it called when you put money into your account?

Answer 1

Deposit

Question 2

What is it called when you take money out of your account?

Answer 2

Withdrawal

Question 2

How do banks make money?

Answer 2

Off the INTEREST they make when they loan money

Question 3

What you can buy with the amount of money you have is called…

Answer 3

Purchasing power

Question 4

What is the purpose of the FDIC?

Answer 4

Insures your money in the bank for up to $250,000

Question 5

What is it called when you trade goods or services without exchanging any money?

Answer 5

Barter

Question 6

What is paper money and coins called?

Answer 6

Currency

Question 7

A written record of all your transactions is called…

Answer 7

Bank statement

Question 8

How often do you receive a bank statement when you have a checking account?

Answer 8

Once a month

Question 9

Why should you start writing the the WRITTEN amount of the check to the furthest left of the line?

Answer 9

So nobody can change the amount

Question 10

What is the booklet for recording your transactions called?

Answer 10

Check register

Question 11

The total amount in your account on a specific date is called what?

Answer 11

Your account balance

Question 12

What is it called when you write a check for more money than you have in your account?

Answer 12

Overdraw

Question 13

The form you fill out in order to put money into your account is called…

Answer 13

Deposit slip

Question 14

What does ‘for deposit only’ mean?

Answer 14

You can only deposit the check

Question 15

When you knowingly write a check to someone for more money than you have in your account because you know you will put money in your account before the check is cashed is called…

Answer 15

Floating check

Question 16

A bank account that allows you to write checks to make payments is called…

Answer 16

Checking account

Question 17

A form of payment that you fill out for any amount, to whomever you want

Answer 17

Check

Question 18

Signing the back of your check is called…

Answer 18

Endorsing the check

Question 19

The percentage of money the bank is going to pay you for borrowing your money is called…

Answer 19

Interest

Question 20

A machine terminal you use to deposit cash, withdrawal cash, and transfer money between accounts is called…

Answer 20

ATM

Question 21

Your secret number that identifies you to the ATM as the owner of the card is called…

Answer 21

Your PIN number

Question 22

Having your paychecks automatically deposited into your account on payday is called…

Answer 22

Direct deposit

Question 23

Banking where you form a user name and password to access your accounts from your own home is called…

Answer 23

Online banking

Question 24

You see what you like and buy it without thinking it through is called...

Answer 24

Impulsive spending

Question 25

Accounts offered where you can deposit money, earn INTEREST, and withdrawal money at any time is called...

Answer 25

Savings account

Question 26

A deposit in a bank that earns a FIXED interest rate for a time period of 3 months to 10 years is called...

Answer 26

CD

Question 27

A type of investment that you can buy or can be given to you that earns interest as it matures is called...

Answer 27

Savings bonds

Question 28

The amount of money written on the bond is called...

Answer 28

Face value

Question 29

True or false: banks have more regulations than any other business.

Answer 29

True

Question 30

True or false: banks evaluate people that are trying to borrow money before they will give out a loan.

Answer 30

True

Question 31

True or false: you have to fill out a check when making a deposit.

Answer 31

False

Question 32

True or false: when you put money in a CD, you can take out the money before the time is up with no penalty.

Answer 32

False

Question 33

True or false: CDs typically have lower interest rates than savings accounts.

Answer 33

False

Question 34

True or false: you should record your deposits in your check register.

Answer 34

True

Question 35

True or false: you can be charged a service charge for using a different banks ATM.

Answer 35

True

Question 36

True or false: the more money you have in your savings account, the less interest you will make.

Answer 36

False

Question 37

What is the one thing you must do before you can cash a check someone has given you?

Answer 37

Endorse the check (sign the back)

Question 38

Debit cards go with what type of accounts: checking or savings?

Answer 38

Checking