1. Apply What You’ve Learned - Managing Checking and Savings Accounts Scenario:
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Question
1. Apply What You’ve Learned - Managing Checking and Savings Accounts
Scenario: You are 26 years old, married, and have two small children. You have a household income (take-home pay) of $3,500 per month and currently rent your home. You have and pay many bills, and make many purchases (usually by debit card) each month. You often lose track of spending and end up paying unnecessary bank fees. You would like to buy a new car in five months and a new home in two years. To avoid overdrafts, you chose "opt-in" overdraft protection with your bank. You just received your bank statement, which states a balance of $691, while your check register says you have a balance of $800.
Which of the following accounts would be best for ...
Purpose
Type of account
Which of the following accounts is typically not insured?
NOW account
Statement savings account
Mutual funds
Certificate of deposit
Which of the following practices would help you keep accurate records regarding the funds in your bank account? Check all that apply.
Wait for the printed bank statement to arrive in the mail to know what payments and receipts have cleared your account.
Review and reconcile your bank statement each month.
Keep track of your balance online.
You can avoid a service fee on an average-balance account if you:
Keep a certain average daily balance in the account through a specified time.
Issue a stop-payment order when you find yourself overdrawn.
Avoid an overdraft for a specified time.
Have your paycheck automatically deposited into your account each pay period.
Purpose
Type of account
Satisfying your day-to-day spending needs? Making and holding funds for your car purchase? Making and holding funds for your home purchase? Making and holding funds for your retirement?Explanation / Answer
Purpose
Type of account
Mutual funds are not typically insured i.e. option third
All other accounts are insured.
Q) Which of the following practices would help you keep accurate records regarding the funds in your bank account? Check all that apply.
Wait for the printed bank statement to arrive in the mail to know what payments and receipts have cleared your account- Not applicable as one should not wait for the bank statement but reconcile using online banking.
Review and reconcile your bank statement each month- Correct or maybe even lesser time period
Keep track of your balance online_ Its a good idea as mistakes can be caugh early on.
correct option-
Keep a certain average daily balance in the account through a specified time.
Purpose
Type of account
Satisfying your day-to-day spending needs? Checking account Making and holding funds for your car purchase? Savings account Making and holding funds for your home purchase? Savings account Making and holding funds for your retirement? Savings accountRelated Questions
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