Chapter 5



Chapter 5 Questions

1. Please list 5 weekly cash needs that you have.

2. What’s direct deposit? What are its advantages and disadvantages? Would you utilize it? Why or why not?

3. List 3 ATM locations in the Okanogan/Omak area.

4. What’s a point of sale transaction?

5. List 3 commercial banks in our community.

6. How does a credit union operate?

7. What are the differences between a credit union and a bank?

8. What do mortgage companies specialize in? Do we have a mortgage company in Okanogan County?

9. You have an ATM card and you use it once a week at the Chevron station ATM. The transaction fee is $3.50 per transaction. How much are you paying for transaction fees in one year (52 weeks in a year)?

10. What is overdraft protection? How does it work? How can it save you in the future?

11. What is the purpose of the checkbook register? How often should you use it?

12. Why is it important to get your OWN checking account?

13. What’s the advantage of a regular savings account?

14. What’s a certificate of deposit?

15. List one of the three limitations of a certificate of deposit.

16. How are interest rates figured with a money market account?

17. Most people save for many years to pay for college. Why might cd’s and U.S. Savings Bonds be a good investment for someone who is saving for such a long-term goal?

18. You deposit $500 in a savings account. The bank is paying you 5% APR, which is compounded monthly. How much interest will you earn after 7 months?

19. How does inflation affect decision making in regard to cd’s and savings bonds.

20. List at least 3 things you must do in order to maintain your checking account.

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