PF- 3 Financial Risks- 10/19/17(Thur.)- Q. #3- Risks, PF- 3 Financial Institutions, 'Services, Tools, and Resources', Checking Account, & Online Banking- 10/15/17(Sun.)- Q #2- Financial Institutions and Services, PF- 3 Overview of a Budget, Spending,...

PF- 3 Q 2: All of the following are services that are available at banks except _____.

- ATM - online banking - traveler's checks - money orders - tax accounts - automatic bill payment - debit card - overdraft protection answer: - tax accounts

PF- 3 Sec. 4: It's hard to determine if the bank's web site is secure.

- True - False answer: - False

PF- 3 Sec. 3: Jordan already has a checking account. She wants to deposit a check that she received from her aunt for her birthday. What should Jordan do?

- Complete a signature card and give it to the teller. - Subtract the amount in her check register. - Sign the back of the check, complete a deposit slip, and bring it to the teller. - Sign the back of the check, complete a withdrawal slip, and go to a cashier. answer: - Sign the back of the check, complete a deposit slip, and bring it to the teller.

PF- 3 Sec. 4: Choose all that apply. Select all the banking tasks that can be done online.

- Create a spending report. - Order new checks. - Set up an alert when your account goes under $50. - Transfer money from your savings to your checking. - Request a stop payment. - View up-to-date account statements. answer: - all of the above

PF- Q 3: Brian received a phone call today asking him to donate to a disaster relief fund. He would like to donate some money. What should Brian do?

- Give them his credit card number over the phone. - Ask for the name of their organization and look for information about them to make sure they are authentic before he donates. - Ask for an address and mail a check. - Assume it is a scam and don't donate. answer: - Ask for the name of their organization and look for information about them to make sure they are authentic before he donates.

PF- 3 Sec. 3: Choose all that apply. Select all the tasks associated with maintaining a checking account.

- Record paycheck deposits in a check register. - Balance the checking account. - Transfer money from checking to savings. - Record and subtract cash withdrawals from an ATM. - Record and add interest. answer: - Record paycheck deposits in a check register. - Balance the checking account. - Record and subtract cash withdrawals from an ATM. - Record and add interest.

PF- 3 Sec. 4: Carl has a checking account. He'd like to know right away when his balance gets lower than $50. What should Carl do?

- Request a stop payment. - Transfer money from his savings account. - Call the bank to ask. - Set up an alert. answer: - Set up an alert.

PF- 3 Sec. 1: Jen heard that the bank where she kept her money was going to close for good. Jen said she wasn't worried. Select the most likely reason that Jen wasn't worried.

- She knew that laws prevented banks from closing for good. - She knew that her bank would open a new account for her at a different bank. - She knew that her money was insured by the FDIC. - She knew that banking rules required banks to give customers their money. answer: - She knew that her money was insured by the FDIC.

PF- 3 Sec. 1: A financial institution always keeps all of your money in the vault.

- True - False answer: - False

PF- 3 Sec. 3: When opening a checking account, the bank does not run an account verification if you provide a state-issued ID.

- True - False answer: - False

PF- Q 3: Financial risks are usually less than $100.

- True - False answer: - False (guess)

PF- 3 Sec. 2: Visit the branch manager when you want to deposit your paycheck.

- True - False answer: - False; Teller

PF- 3 Q 2: A financial institution formed by a large organization for its members is a credit union.

- True - False answer: - True

PF- 3 Q 2: To determine if the bank's web site is secure, look at the web site address.

- True - False answer: - True

PF- Q 3: A scam is a fraudulent scheme used to make money.

- True - False answer: - True

PF- Sec. 1: Phishing is looking for and reporting online scams.

- True - False answer: - True

PF- Q 3: A good financial plan includes an insurance plan.

- True - False answer: - True (guess)

PF- 3 Sec. 2: To get money from an ATM, you need _____.

- a loan - an ATM card and a pin - a password and a check - a money order and a key answer: - an ATM card and a pin

PF- 3 Sec. 2: Mitchell does not have a checking account, but needs to pay a bill. By what means can Mitchell pay?

- a money order - direct deposit - transfer - loan answer: - a money order

PF- 3 Sec. 4: A stop-payment request is _____.

- a request to close a checking account - a request by an account holder for the bank to not pay a specific payment - a request to pay a bill electronically - request to stop a bill from being sent answer: - a request by an account holder for the bank to not pay a specific payment

PF- 3 Sec. 3: What should appear in this section of a check register?

- amount withdrawn - amount deposited - balance - check number answer: - amount deposited

PF- Q 3: When purchasing car insurance, you'll need to decide how much bodily injury limit you'll need. The bodily injury limit is the _____.

- amount you pay when you get in an accident - most the insurance company will pay - most the person insured will pay - least the insurance company will pay answer: - most the insurance company will pay (guess)

PF- 3 Sec. 1: A financial institution formed by a large corporation for their employees is a _____.

- bank - savings and loan - FDIC - credit union answer: - credit union

PF- 3 Q 2: Choose all that apply. Eva would like more information on services available at her bank. Which of the following resources could she use?

- bank teller - printed material - customer service representative at a bank - book about personal finances - bank web sites answer: - bank teller - printed material - customer service representative at a bank - bank web sites

PF- 3 Q 2: Visit the _____ when you want to deposit a check.

- branch manager - customer service agent - loan officer - bank teller answer: - bank teller

PF- 3 Q 2: In order to maintain a checking account, you need to record all your transactions in a check register and _____.

- call the bank each month to find out which checks have been cashed - reconcile the checkbook - transfer money from checking to savings - visit the ATM to check the account balance answer: - visit the ATM to check the account balance

PF- 3 Q 2: What is this section of the check register used for?

- checkmarks to indicate transactions that have been processed - amount deposited - balance - check numbers that have been deposited into the account answer: - checkmarks to indicate transactions that have been processed

PF- Sec. 1: Life insurance _____.

- covers hospital bills - pays for repairs on cars - pays a certain sum of money to a beneficiary in case of death - covers the costs associated with life answer: - pays a certain sum of money to a beneficiary in case of death

PF- Q 3: When you get in a car accident, you should _____.

- file a claim - shop for an insurance policy - sign a contract with an insurance agent - start paying the premium answer: - sign a contract with an insurance agent

PF- Q 3: To help protect yourself from the risk of product failure, what strategy could you use?

- get a deductible - obtain insurance - purchase a warranty - file a claim answer: - file a claim (guess)

PF- Q 3: Zach has heard the company where he works is not making enough in profits and is facing rough times. What risk does he face?

- illness - scam - loss of job - loss of car insurance answer: - loss of job

PF- 3 Sec. 2: Two types of deposit accounts are _____.

- loans and saving - checking and direct deposit - checking and savings - savings and loans answer: - checking and savings

PF- 3 Sec. 1: Choose all that apply. When selecting a financial institution that is the best for you, you should consider _____.

- minimum balance - services offered - other people who bank there - locations of banks and ATMs - fees answer: - minimum balance - services offered - locations of banks and ATMs - fees These factors are: fees, locations, services, interest, hours, and minimum account balance.

PF- 3 Q 2: When selecting the best checking account, you should consider _____.

- minimum balance, fees, and interest - fees, color of the checks, and bank's hours - how long it takes to open the account - whether they will reconcile your checkbook for you answer: - minimum balance, fees, and interest

PF- 3 Q 2: Mike takes a card out of his wallet at the grocery store and swipes it to pay for his groceries. What did Mike use?

- money order - debit card - transfer card - loan card answer: - debit card

PF- Q 3: Choose all that apply. Select all the information you need when getting a quote for car insurance.

- name - age - gender - number of accidents - town you live in - make and model of car - approximate number of miles driven per year answer: - name - age - gender - number of accidents - town you live in - make and model of car

PF- Sec. 1: The purpose of insurance is to _____.

- pay for repairs when you can't pay for them - help protect you from financial loss - protect you from getting sick and needing a doctor - pay for insurance premiums answer: - pay for repairs when you can't pay for them

PF- 3 Sec. 2: Choose all that apply. If you want more information about services available at a bank, you can use the following resources.

- printed material - customer service representative - bank teller - loan officer - bank web sites answer: - all of the above

PF- 3 Q 2: Choose all that apply. Select all the reasons to keep your money in a financial institution.

- safety - security - convenience - growth - financial future - cost answer: - all of the above

PF- 3 Q 2: The main types of financial institutions are all of the following except _____.

- savings and loan - bank - financial adviser - credit union answer: - financial adviser

PF- Q 3: All the following are financial risks except _____.

- scam - identity theft - natural disaster - buying a warranty answer: - buying a warranty (guess)

PF- Sec. 1: Jim purchases land hoping that the value of the land will increase over the next five years. What risk does Jim face?

- scam - theft - losing money in an investment - paying for expensive repairs answer: - losing money in an investment

PF- 3 Sec. 3: When writing a check, you complete all of these steps except for _____.

- signing the back of the check - writing the date - writing the amount in numbers - writing the amount in words - signing the front of the check answer: - signing the back of the check

PF- Q 3: Name three types of insurance.

Writer:

PF- Sec. 1: List five risks that were discussed in this lesson.

Writer: 1. scams 2. identity theft 3. investment loss 4. job loss 5. cash loss 6. accident or injury 7. theft 8. product failure 9. expensive repairs 10. illness 11. disability 12. natural disaster

PF- 3 Sec. 4: Describe how to make an electronic payment.

Writer: An exchange between buyers and sellers that takes place online. (wrong)

PF- 3 Sec. 1: Name four reasons for keeping your money in a financial institution.

Writer: Safety, growth, convenience, security, financial future, and cost.

PF- 3 Sec. 2: Name five services available at banks.

Writer: These services include ATMs, online banking, direct deposit, transfers, money orders, loans, debit cards, money exchange, automatic bill payment, traveler's checks, and overdraft protection.

PF- 3 Sec. 4: Name three advantages of banking online.

Writer: 1. If you visit your bank's web site and log into your account, the URL address changes from "http" to "https." The extra "s" stands for "security," and lets you know that the page is secure. 2. A padlock icon may appear somewhere on the page. Newer Web browsers may also use a green background on the address bar to indicate the connection is secure. 3. You may also find a gold seal somewhere on the site that reads, "VeriSign Secure Site." VeriSign is a leading provider of Internet trust services, and its insignia is confirmation that your bank is certified as a secure domain. (wrong)

PF- Q 3: Why is it important to have insurance?

Writer: Its important to have insurance so that you don't have to pay for all of your losses.

deposit account

a bank account that lets you add money to the account

checkbook register

a booklet used to track deposits and withdrawals from a checking account

bank

a business and financial institution; a safe place to keep your money

debit card

a card that can be used to pay for products and services or be used at an ATM; looks similar to a credit card, but the payment amount is subtracted directly from an account a card used to buy something from a store or another business

savings and loan

a financial institution that specializes in home loans

scam

a fraudulent scheme used to make money

transfer

a method of electronically moving money from one account to another

credit union

a nonprofit financial institution formed by a large corporation or organization for their employees and members

beneficiary

a person who receives the payment from a life insurance policy

account verification

a process where banks check your credit history to make sure you will be a responsible account holder

financial institution

a public or private organization that collects and invests money and offers financial services

stop payment

a request by an account holder to the bank not to pay a specific payment

claim

a request for payment from an insurance company

online banking

allows you to check your account balance from a computer

insurance policy

an agreement to cover or reimburse an individual for a loss that occurs

co-payment

an amount the insured person pays to cover a portion of a doctor bill or cost for prescription

money order

an order for the payment of a certain amount of money; resembles a check and is typically used to pay a bill used like a check to pay a bill

PF- 3 Q 2: What are the steps for writing a check? - Sign the front of the check, write the bank's name, and write the date you want the check to be cashed. - Enter the date, write the check number, write the amount in numbers, and sign the front of the check. - Enter today's date, write the payee's name, write the amount in numbers, write the amount in words, and sign the back of the check. - Enter today's date, write the payee's name, write the amount in numbers, write the amount in words, and sign the front of the check.

answer: - Enter the date, write the check number, write the amount in numbers, and sign the front of the check.

PF- 3 Sec. 1: Choose all that apply. The main types of financial institutions are _____. - savings and loans - banks - stock firms - financial advisors - credit unions

answer: - banks - credit unions - savings and loans

PF- Sec. 1: Choose all that apply. Select all the strategies you can use to manage risks. - buy health insurance - provide your personal information to others - have an emergency fund - have a warranty - become informed - carry lots of cash

answer: - have an emergency fund - become informed

PF- Q 3: Liability coverage is _____. - a type of health insurance - coverage for expenses associated with lawsuits - the portion of health insurance that protects doctors from lawsuits - insurance that covers other people's injury or loss for which you are responsible

answer: - insurance that covers other people's injury or loss for which you are responsible

PF- 3 Q 2: A balance is _____. - the amount of money you have in an account at a certain time - a certain type of account at a bank - money you pay banks - money deposited in a checking account

answer: - money deposited in a checking account (guess)

PF- 3 Sec. 4: A ______ is a request by an account holder to the bank not to pay a specific payment.

answer: - stop payment

PF- Q 3: What is the purpose of travel insurance? - to help you save for a vacation - to cover the cost of travel expenses in case you are unable to travel - to pay for any accidents that happen while you are on vacation - to pay for car accidents in the rental car

answer: - to cover the cost of travel expenses in case you are unable to travel

Dental insurance

covers at least part of the costs incurred at a dental office, such as cleanings, exams, fillings, and x-rays.

Health insurance

covers costs associated with health, such doctor bills, hospital stays, vaccinations, and prescriptions from a pharmacy. Health insurance varies greatly in what it covers. Sometimes a health insurance plan will require you to pay a 'co-payment.' This is a fee that you pay each time you visit the doctor or buy a prescription.

Vision insurance

covers costs incurred at an optometrist's office.

Travel insurance

covers costs paid for a vacation in case there's need to cancel.

Jewelry insurance

covers the cost to replace jewelry in the case of loss or theft.

liability coverage

insurance that covers injury or loss to other people, for which injury or loss you are responsible

property coverage

insurance that covers the contents of your home, such as furniture, television, bikes, appliances, and clothing

consumer rights

laws that protect people who make purchases

loan

money you borrow from a bank with a written promise to pay it back later

direct deposit

one method your employer might choose to give you your paycheck

Life insurance

pays a certain sum of money in the case of death. The payment is made to the 'beneficiary.' Purchasing life insurance does not show weakness in your faith in God. Life insurance provides funds for the family in the case of a death, so having life insurance is a good stewardship decision.

Malpractice insurance

protects doctors, dentists, and other professionals from financial loss caused by law suits.

Home or homeowner's insurance

provides financial protection against disasters to your home. A standard policy insures the home itself and provides 'property coverage' for the things you keep in it.

Renter's insurance

provides property coverage for damages that occur to items inside a rental property.

Car insurance

provides protection in case of an accident or theft. It covers hospitalization costs that happen as a result of a car accident. Some policies include 'liability coverage' or coverage for the costs incurred by others involved in a car accident that's your fault.

Disability insurance

replaces a percentage of your gross income if an injury or illness prevents you from earning an income.

phishing

requesting confidential information over the internet under false pretenses to fraudulently obtain credit card numbers, passwords, or other personal data

ATM

terminal where you can deposit, withdraw, or transfer money from one account to another twenty-four hours a day

deductible

the amount a person has to pay when making an insurance claim, with the remaining cost covered by the insurance company is the amount an individual has to pay before the insurance company will cover the remaining costs.

premium

the amount paid by the policyholder for insurance

identity theft

the crime of stealing an individual's personal information in order to gain from that person's finances

bodily injury limit

the most the insurance company will pay

payee

the person or company to which you are writing a check