Test Bank for Macroeconomics
all of the following are true about prepaid cards EXCEPT:
a-prepaid cards typically include a lot of fees
b-prepaid cards are a useful option for someone who is unbanked to make online purchases
c-prepaid cards are a great way to build credit
d-prepaid cards are usually accepted anywhere that debit and credit cards are accepted -
ANSWERSc-prepaid cards are a great way to build credit
you are developing a savings plan and using short-, medium-, and long term goals to motivate
you. Which represents possible possible goals from short term to long term ?
a-retirement, a house down payment, college tuition
b-a new cell phone, college tuition, a house down payment
c-a new cell phone, dinner with friends this weekend, a new bike
d-retirement, college tuition, a vacation - ANSWERSb-a new cell phone, college tuition, a house
down payment
Juan saved $1000 from his summer job cleaning pools. Which of these account types would
work best for him i he doesn't need access to the money for a number of years and wants to
earn the highest interest rate? - ANSWERScertificate of deposit
Monthly income should be separated as- 50% should go to ____, 30% should go to ____, and
20% should go to ____ - ANSWERSneeds, wants, and savings
which represents the best time to start saving for your retirement? - ANSWERSAs soon as you
have your first full time job.
True or false: The majority of americans do NOT have an adequate emergency fund or sufficient
amounts of money saved for retirement. - ANSWERSTrue
, Experts recommend that you accumulate enough to cover 3-6 ______ of expenses in your
emergency fund. - ANSWERSMonths
True or false: Historically, savings accounts earn higher returns than investments in the stock
market - ANSWERSfalse
What is the highest expected interest rate to lowest expected interest rate for savings options? -
ANSWERS10-year CD, 5-year CD Savings account at traditional bank.
Personal saving strategy? - ANSWERSSave a certain percentage of each paycheck and deposit it
directly into a savings account
What best describes a checking account ? - ANSWERSThis account pays you interest on money
you have put away for later to help your money grow.
What does "living paycheck to paycheck" mean ? - ANSWERSNo money is saved and paychecks
are just barely covering monthly expenses
You used your debit card to purchase groceries, where does the money for this purchase come
from? - ANSWERSit is deducted directly from your checking account
A notification alerts you that your account balance has dropped $100 after a series of ATM
withdrawals. You have not used the ATM in over a week. What should you do? -
ANSWERSContact your bank immediately to see if your account has been hacked.
What transaction will reduce your checking account balance immediately? - ANSWERSusing
your debit card to pay for groceries.
all of the following are true about prepaid cards EXCEPT:
a-prepaid cards typically include a lot of fees
b-prepaid cards are a useful option for someone who is unbanked to make online purchases
c-prepaid cards are a great way to build credit
d-prepaid cards are usually accepted anywhere that debit and credit cards are accepted -
ANSWERSc-prepaid cards are a great way to build credit
you are developing a savings plan and using short-, medium-, and long term goals to motivate
you. Which represents possible possible goals from short term to long term ?
a-retirement, a house down payment, college tuition
b-a new cell phone, college tuition, a house down payment
c-a new cell phone, dinner with friends this weekend, a new bike
d-retirement, college tuition, a vacation - ANSWERSb-a new cell phone, college tuition, a house
down payment
Juan saved $1000 from his summer job cleaning pools. Which of these account types would
work best for him i he doesn't need access to the money for a number of years and wants to
earn the highest interest rate? - ANSWERScertificate of deposit
Monthly income should be separated as- 50% should go to ____, 30% should go to ____, and
20% should go to ____ - ANSWERSneeds, wants, and savings
which represents the best time to start saving for your retirement? - ANSWERSAs soon as you
have your first full time job.
True or false: The majority of americans do NOT have an adequate emergency fund or sufficient
amounts of money saved for retirement. - ANSWERSTrue
, Experts recommend that you accumulate enough to cover 3-6 ______ of expenses in your
emergency fund. - ANSWERSMonths
True or false: Historically, savings accounts earn higher returns than investments in the stock
market - ANSWERSfalse
What is the highest expected interest rate to lowest expected interest rate for savings options? -
ANSWERS10-year CD, 5-year CD Savings account at traditional bank.
Personal saving strategy? - ANSWERSSave a certain percentage of each paycheck and deposit it
directly into a savings account
What best describes a checking account ? - ANSWERSThis account pays you interest on money
you have put away for later to help your money grow.
What does "living paycheck to paycheck" mean ? - ANSWERSNo money is saved and paychecks
are just barely covering monthly expenses
You used your debit card to purchase groceries, where does the money for this purchase come
from? - ANSWERSit is deducted directly from your checking account
A notification alerts you that your account balance has dropped $100 after a series of ATM
withdrawals. You have not used the ATM in over a week. What should you do? -
ANSWERSContact your bank immediately to see if your account has been hacked.
What transaction will reduce your checking account balance immediately? - ANSWERSusing
your debit card to pay for groceries.
