TEST BANK FOR PERSONAL FINANCE
UPDATED A+
Unbanked ----------SOLUTION---------- No access to regular (low income) banking
- No FDIC
- Roughly 30 million Americans
Underbanked ----------SOLUTION---------- Some access to banking services
- No access to bank loans
Check cashing business ----------SOLUTION---------- Service for unbanked/underbanked customers for
check cashing $$$
- Ex: Walmart, Check n' Cash
Payday lending ----------SOLUTION---------- Illegal in some states
- Short term loans (2 weeks)
- 400-600% interest
Prepaid cards ----------SOLUTION---------- Preloaded credit card with a set amount of money
- Cost extra
Payroll card ----------SOLUTION---------- Paycheck from company onto credit card
Cash deposit, deposit check, mobile deposit (take picture of check), direct deposit (from employer),
transfer, ATM ----------SOLUTION---------What are the ways that you can put $ IN to your checking
account?
, ATM, debit card, checks, transfers, withdrawals, overdraft fees, bill pay ----------SOLUTION---------
What are ways to take $ OUT of your checking account?
True ----------SOLUTION---------True or False: banks are not the same as credit unions
Big bank ----------SOLUTION---------- International banking
- More digital offerings
- FDIC protection
Community bank ----------SOLUTION---------- Lower fees and charges than national bank
- Less risk-taking
- Improve spaces in hometown (support/give back to local community)
- FDIC protection (up to $250,000)
Credit union ----------SOLUTION---------- NONPROFIT entities ($ goes back into members of
organization in:
- higher savings rates/better loan terms/reduced fees)
- Have members (part-owner of institution)
- NCUA protection
Credit unions are nonprofit ----------SOLUTION---------What is the difference between credit unions
and banks?
Monthly maintenance fee ----------SOLUTION---------The fee charged to maintain a particular account,
such as a checking or savings account.
Out-of-network ATM fee ----------SOLUTION---------Charge for using an ATM that belongs to another
depository institution.
Excessive transactions fee ----------SOLUTION---------Penalties for excessive withdrawals from a
savings account or money market account
UPDATED A+
Unbanked ----------SOLUTION---------- No access to regular (low income) banking
- No FDIC
- Roughly 30 million Americans
Underbanked ----------SOLUTION---------- Some access to banking services
- No access to bank loans
Check cashing business ----------SOLUTION---------- Service for unbanked/underbanked customers for
check cashing $$$
- Ex: Walmart, Check n' Cash
Payday lending ----------SOLUTION---------- Illegal in some states
- Short term loans (2 weeks)
- 400-600% interest
Prepaid cards ----------SOLUTION---------- Preloaded credit card with a set amount of money
- Cost extra
Payroll card ----------SOLUTION---------- Paycheck from company onto credit card
Cash deposit, deposit check, mobile deposit (take picture of check), direct deposit (from employer),
transfer, ATM ----------SOLUTION---------What are the ways that you can put $ IN to your checking
account?
, ATM, debit card, checks, transfers, withdrawals, overdraft fees, bill pay ----------SOLUTION---------
What are ways to take $ OUT of your checking account?
True ----------SOLUTION---------True or False: banks are not the same as credit unions
Big bank ----------SOLUTION---------- International banking
- More digital offerings
- FDIC protection
Community bank ----------SOLUTION---------- Lower fees and charges than national bank
- Less risk-taking
- Improve spaces in hometown (support/give back to local community)
- FDIC protection (up to $250,000)
Credit union ----------SOLUTION---------- NONPROFIT entities ($ goes back into members of
organization in:
- higher savings rates/better loan terms/reduced fees)
- Have members (part-owner of institution)
- NCUA protection
Credit unions are nonprofit ----------SOLUTION---------What is the difference between credit unions
and banks?
Monthly maintenance fee ----------SOLUTION---------The fee charged to maintain a particular account,
such as a checking or savings account.
Out-of-network ATM fee ----------SOLUTION---------Charge for using an ATM that belongs to another
depository institution.
Excessive transactions fee ----------SOLUTION---------Penalties for excessive withdrawals from a
savings account or money market account
