Answers26-27 Career Planning and Development AB 9842E 9843EBanking: How to Manage Your Money

Banking: How to Manage Your Money — Quiz Answers

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1
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Many checking accounts offer multiple ways of accessing money in addition to checks. Which of these can be used to access money in a checking account?

A
certificate of deposit
B
passbook
C
debit card
D
credit card
2
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What is the best reason for Jacinta to have a savings account in addition to a checking account?

A
A savings account keeps her money safe and separate from her spending money.
B
A savings account accepts all direct deposits and processes all direct withdraws.
C
A savings account ensures she will never go into debt.
D
A savings account guards her money against inflation.
3

Which of these is an advantage of checking accounts?

A
Checking accounts allow convenient ways to deposit or withdraw funds.
B
Checking accounts offer limited checks but offer higher rates of interest.
C
Checking accounts prevent the customer from having overdraft fees.
D
Checking accounts are processed immediately so customer and bank records always match.
4

Which of these is a characteristic of certificates of deposit (CDs)?

A
They can be opened with any amount of money.
B
They last for a set period of time.
C
They allow access to the money at any time without penalty.
D
They are always offered at variable rates.
5

In which situation would a savings bond be the best investment to earn interest?

A
if you are putting aside a chunk of money to purchase a house in five years
B
if you are saving each month for a new car
C
if you need access to your cash quickly
D
saving to pay a tax bill in four months
6

Sofia has saved $10,000. She wants to be sure that she is earning interest on her money and can add to her savings. She also wants to be able to access her money if the need should arise. Which type of account is most suitable for Sofia’s needs?

A
a money market account
B
a savings bond
C
a checking account
D
a certificate of deposit
7

What is one benefit of purchasing saving bonds?

A
Saving bonds are short term investments backed by the government to protect from loss.
B
Saving bonds are purchased from commercial banks and guaranteed to increase in value.
C
Saving bonds are purchased from the government and guaranteed to increase in value.
D
Saving bonds are long term investments created to help first time home buyers obtain a mortgage.
8

In which situation would a certificate of deposit (CD) be the best banking choice?

A
Samuel is setting money aside but still needs emergency access to it.
B
Hafsa wants a guaranteed return, and won’t need the money for several years.
C
Raj is looking for an investment with a fast return so he can reinvest.
D
Darren is looking for an investment that has a very high interest rate.
9

What is the best reason for Jacinta to have a savings account in addition to a checking account?

A
A savings account ensures she will never go into debt.
B
A savings account accepts all direct deposits and processes all direct withdraws.
C
A savings account guards her money against inflation.
D
A savings account keeps her money safe and separate from her spending money.
10

What does reconciling an account involve?

A
checking one's financial records against the bank’s
B
making sure a paycheck arrives on time
C
calculating the interest owed on a savings account
D
identifying instances of identity theft

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