Banking: How to Manage Your Money Answers

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What is a major difference between retail banks and credit unions?

Retail banks only serve businesses, while credit unions only serve individuals.

Retail banks operate in order to earn profit, while credit unions are nonprofit.

Retail banks only have small local branches, while credit unions are nationwide.

Retail banks manage a person’s money, while credit unions focus on providing loans.

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Which of these is an advantage of checking accounts?

Checking accounts prevent the customer from having overdraft fees.

Checking accounts allow convenient ways to deposit or withdraw funds.

Checking accounts are processed immediately so customer and bank records always match.

Checking accounts offer limited checks but offer higher rates of interest.

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

A savings account accepts all direct deposits and processes all direct withdraws.

A savings account ensures she will never go into debt.

A savings account guards her money against inflation.

A savings account keeps her money safe and separate from her spending money.

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