Podcast
Questions and Answers
A bank can help you _____ your money and keep it _____.
A bank can help you _____ your money and keep it _____.
manage; safe
Some of the services banks offer include...
Some of the services banks offer include...
Mortgages, check writing, and debit cards.
A savings account is for ___________.
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...
An easy way to avoid ending up with errors in your checking account is to simply...
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The Federal Deposit Insurance Corporation (FDIC) and National Credit Union Administration (NCUA) keep your money in the bank insured up to ______ per account.
The Federal Deposit Insurance Corporation (FDIC) and National Credit Union Administration (NCUA) keep your money in the bank insured up to ______ per account.
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Credit Unions differ from retail banks in that they typically require membership based on specific criteria.
Credit Unions differ from retail banks in that they typically require membership based on specific criteria.
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Your emergency fund should go in your checking account, NOT a money market account.
Your emergency fund should go in your checking account, NOT a money market account.
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If you see 'pending' on an account charge, that means...
If you see 'pending' on an account charge, that means...
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Distrust, unemployment, and bank fees are a few excuses people give for...
Distrust, unemployment, and bank fees are a few excuses people give for...
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If you prefer great customer service and lower fees...
If you prefer great customer service and lower fees...
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A debit card, ATM access, payroll direct deposit, and checks are basic features of ___________.
A debit card, ATM access, payroll direct deposit, and checks are basic features of ___________.
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If you see a charge you don't recognize, you should report it to your bank immediately.
If you see a charge you don't recognize, you should report it to your bank immediately.
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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.
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.
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With online banks, all of your deposits, transfers, and bill payments happen digitally, but...
With online banks, all of your deposits, transfers, and bill payments happen digitally, but...
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With certificates of deposit (CDs), you have to pay a penalty for ____________.
With certificates of deposit (CDs), you have to pay a penalty for ____________.
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Verifying your bank's online account statements for accuracy is called ____________.
Verifying your bank's online account statements for accuracy is called ____________.
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It's your responsibility to know about all of the _______ before choosing a bank.
It's your responsibility to know about all of the _______ before choosing a bank.
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You should avoid any bank service that leads to...
You should avoid any bank service that leads to...
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Liquidity is...
Liquidity is...
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Balancing your checking account is a lot like working on your budget because...
Balancing your checking account is a lot like working on your budget because...
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Something that all of the predatory financial services have in common is...
Something that all of the predatory financial services have in common is...
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Banks invest their customers' deposited money and then...
Banks invest their customers' deposited money and then...
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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 ____________.
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 ____________.
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As the owner of your account, managing your money is ______ responsibility.
As the owner of your account, managing your money is ______ responsibility.
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What does it mean to be blacklisted by a bank?
What does it mean to be blacklisted by a bank?
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Overdraft protection sounds like a good idea...
Overdraft protection sounds like a good idea...
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Make sure your bank has plenty of _____ and _____.
Make sure your bank has plenty of _____ and _____.
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Overdrafting your account is a sign of diligence and responsibility.
Overdrafting your account is a sign of diligence and responsibility.
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A debit card linked with your checking account is a good option for regular spending.
A debit card linked with your checking account is a good option for regular spending.
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You need to track everything that involves money, including...
You need to track everything that involves money, including...
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What is a financial institution licensed to receive deposits and provide financial services?
What is a financial institution licensed to receive deposits and provide financial services?
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What is the independent federal agency that insures deposits in bank accounts up to $250,000?
What is the independent federal agency that insures deposits in bank accounts up to $250,000?
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What is the independent federal agency that supervises federal credit unions and insures depositor's money in credit unions up to $250,000?
What is the independent federal agency that supervises federal credit unions and insures depositor's money in credit unions up to $250,000?
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What do you call people who don't have bank accounts?
What do you call people who don't have bank accounts?
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What do you call people who have savings or checking accounts but still use alternative financial products and services?
What do you call people who have savings or checking accounts but still use alternative financial products and services?
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What are for-profit financial institutions that accept deposits and offer a variety of deposit accounts and financial services?
What are for-profit financial institutions that accept deposits and offer a variety of deposit accounts and financial services?
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What do you call nonprofit financial institutions that are owned and operated by their members?
What do you call nonprofit financial institutions that are owned and operated by their members?
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What is also known as internet banking, where all transactions are done online and there is no physical location?
What is also known as internet banking, where all transactions are done online and there is no physical location?
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What option do banks offer to cover overspending an account and then charge a fee for it?
What option do banks offer to cover overspending an account and then charge a fee for it?
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What is the penalty charged if the account holder spends more than the available balance, causing the available balance to go below zero?
What is the penalty charged if the account holder spends more than the available balance, causing the available balance to go below zero?
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What are the three ways banks make money?
What are the three ways banks make money?
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What do you call how quickly you can access the money in an account or the value of an asset without a penalty or fee?
What do you call how quickly you can access the money in an account or the value of an asset without a penalty or fee?
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What is also called a ledger; a lined and divided journal to record checking account activity?
What is also called a ledger; a lined and divided journal to record checking account activity?
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What is the option to allow automatic electronic deposit of your payroll checks?
What is the option to allow automatic electronic deposit of your payroll checks?
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What is the process of making sure you and the bank agree on how much money is in your checking account?
What is the process of making sure you and the bank agree on how much money is in your checking account?
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Which bank service would typically offer the highest interest rate?
Which bank service would typically offer the highest interest rate?
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Which of the following is not a way that banks make money?
Which of the following is not a way that banks make money?
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Many Americans are ___________________, meaning they don't have a bank account.
Many Americans are ___________________, meaning they don't have a bank account.
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Over drafting your checking account is a sign of...
Over drafting your checking account is a sign of...
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A traditional brick and mortar bank is what kind of bank?
A traditional brick and mortar bank is what kind of bank?
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Study Notes
Personal Finance Overview
- Banks aid in managing money and ensuring its safety.
- Services offered by banks include mortgages, check writing, and debit cards.
Savings and Accounts
- Savings accounts are intended for long-term savings goals.
- Monitoring your account at least twice weekly helps prevent errors in checking accounts.
Insurance and Safety
- FDIC and NCUA insure up to $250,000 per account to protect deposited money.
Credit Unions vs. Retail Banks
- Credit unions require membership based on specific criteria, differentiating them from retail banks.
- Retail banks are for-profit institutions that offer various financial services.
Emergency Funds and Accounts
- Emergency funds should be placed in a money market account, not a checking account.
- "Pending" charges indicate that a transaction has not completed processing yet.
Banking Choices and Financial Responsibility
- Many individuals avoid banks due to distrust, unemployment, or perceived bank fees.
- Small, local banks often provide better customer service and lower fees.
Online Banking Features
- Basic features of online banking include debit card access, ATM use, direct deposit, and check processing.
Financial Assistance and Record-Keeping
- Immediate reporting of unrecognized charges to a bank is crucial for financial safety.
- Balancing checking accounts builds confidence and is similar to budgeting.
Predatory Financial Services
- Predatory services commonly lead to financial losses for users.
- Banks invest deposits and retain profits from the interest earned.
Account Management
- Identifying account types and desired features is vital when choosing a bank.
- Managing money is the user's responsibility and involves understanding fees and services.
Banking Challenges and Solutions
- "Blacklisted" by a bank means a user was denied an account due to poor financial history.
- Overdraft protection allows banks to cover overspending for a fee.
Access and Liquidity
- Having numerous ATM locations and mobile banking apps enhances banking convenience.
- Liquidity describes how quickly one can access funds without penalties.
Financial Institutions and Terms
- The FDIC insures bank deposits up to $250,000; the NCUA provides similar insurance for credit unions.
- "Unbanked" refers to individuals without bank accounts, while "underbanked" refers to those who have accounts but also utilize alternative financial services.
Types of Banks and Their Functions
- Online banks operate without physical locations and conduct transactions solely online.
- Overdraft fees penalize account holders for spending beyond their available balance.
Profits in Banking
- Banks generate revenue through fees, loans, and investments.
- Interest on a savings balance is not a method for banks to make money; it is a form of return for account holders.
Record Keeping
- A checking account register, or ledger, is essential for tracking financial activity.
- Direct deposit allows for automatic electronic payroll deposits, enhancing cash flow management.
Conclusion
- Regular reconciliation of accounts ensures both the bank and the account holder agree on the available balance.
- Money market accounts typically offer higher interest rates compared to regular accounts.
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Description
Test your knowledge on personal finance, including banking services, savings accounts, and financial safety measures. This quiz covers essential topics such as the differences between credit unions and retail banks, as well as the importance of emergency funds. Assess your understanding of managing money effectively in today's financial landscape.
