Weeks 4-6 of Personal Finance

What is an example of account verification?

When a bank checks your photo ID before you open an account at that institution

What type of expense would your daily coffee purchase be?

Food expense

Credit cards

Generally offer more protection than a debit card

"Brick and Mortar" bank

Higher expenses related to building maintenance Charges fees for opening accounts Higher expenses related to personnel

What event in American history had a profound effect on modern-day banking regulations and policy?

The Great Depression

Interest

The percentage of your balance that the bank pays you for keeping your money at that bank

Financial institutions must charge ________ and penalties to incur the costs of operating their business.

fees

To keep your account at a financial institution active, you will need to _______________.

make deposits

The Share Insurance Fund has the backing of the full faith and credit of ________________.

the United States

In a financial institution that is federally insured, deposited money is safe from ____________________.

theft, loss, and fire

malware

viruses and ransomware running on your device

1 Thessalonians 4:10-12 says, "But we urge you, brothers . . . to aspire to live quietly, and to mind your own affairs, and to _______________, as we instructed you, so that you may walk properly before outsiders and be dependent on no one."

work with your hands

What is also known as a savings and loans association and is a financial institution that specializes in accepting savings deposits and making money off of mortgages and personal loans to its members?

Thrift

God used the ant in Proverbs 6:5-8 to teach us what? Choose the three that apply. Please do not guess, as incorrect answers are penalized for this question type.

To acquire wisdom To put aside extra money from each paycheck into a savings account To not be lazy

The FDIC signifies which two things of banks who use this service?

Trust and stability

The First and Second Banks of the United States were given a ___-year charter.

20

Direct Deposit

A bank service that accepts your paycheck into your account electronically

_______ are electronic terminals that let you bank almost virtually any time.

ATMs

Choose all statements that describe a "bank." Please do not guess, as incorrect answers are penalized for this question type.

Accepts deposits to accounts Invests in capital markets to make money for the institution as well as its customers Charges fees and interest to pay administrators and stock holders A financial institution Regulated by the government

If you make an inquiry about your account and the bank has to take time to review all transactions and changes to your account, what fee might you incur?

Account research fee

What four responsibilities does the Federal Reserve System have that were also the responsibilities of its predecessors, the First and Second Bank of the United States? Choose the four correct answers. Please do not guess, as incorrect answers are penalized for this question type.

Acts as the federal government's fiscal agent Receives revenues for the federal government Holds deposits for the federal government Makes payments for the federal government

If the bank does not initially allow you to open an account, what options do you have?

Ask about a "second-chance" option that may allow you to open a checking account after meeting certain requirements.

Based on the content of the lesson, what can you infer that prosperity means?

Being successful or thriving

What is it called when you authorize specific deposits, such as a paycheck, on a regular basis?

Direct deposit

Unsolicited emails

Do not open any attachments or links within

Which item would you NOT see on a checkbook register?

Driver's license number

When you request a cashier's check or other forms of payment through a delivery service overnight, what type of fee might you incur?

Expedited delivery fee

The cost of something is called what?

Expenses

FDIC (Federal Deposit Insurance Corporation)

Insures deposits for banks and thrift institutions

Fees

Money that the bank charges and deducts from your account

Social Security number

Never give this out in response to an unsolicited message

Online bank

No fees for opening accounts Lower overhead expenses Quicker and more convenient

________________ are similar to credit unions. They are financial institutions that are overseen by the Office of the Comptroller of the Currency. They concentrate on savings accounts and loans, especially for construction.

Savings and loans associations

Which of the following can be considered a "need"? Choose the three that apply. Please do not guess, as incorrect answers are penalized for this question type.

Shelter Food Clothing

What did the Full Employment and Balanced Growth Act, signed by Jimmy Carter into law in 1978, require? Choose the two that apply. Please do not guess, as incorrect answers are penalized for this question type.

The president to submit a report to Congress that explains the president's economic goals and when they will be achieved The Federal Reserve to provide Congress with a semi-annual report on the Fed's objectives and plans for monetary policy

Cybersecurity

The process of protecting and recovering accounts, devices, and programs from any type of cyberattack

What is one consequence of not maintaining organized financial records?

You could be charged fees or interest.

Which items would not typically be found on a check? Choose the three that apply. Please do not guess, as incorrect answers are penalized for this question type.

Your Social Security number Your monthly mortgage amount Your checking account balance

The first thing you need to do to open a bank account is to go through a process called ___________________.

account verification

cyberattacks

any malicious internet event meant to invade your privacy

Phishing

pretending to be someone you trust or a system you work with to get you to visit a fictitious site and enter your login or other private information

NCUA (National Credit Union Administration)

Insures deposits for credit unions

In the 1970's under the Carter administration, the United States was plagued with __________________.

high inflation and high unemployment

Even though we should be careful with our money and valuables, what does the Bible say about the things of this world and wealth? Choose the four answers that apply. Please do not guess, as incorrect answers are penalized for this question type.

"For where your treasure is, there your heart will be also." - Matthew 6:21 Jesus said to the rich young ruler, "You lack one thing: go, sell all that you have and give to the poor, and you will have treasure in heaven; and come, follow me." "But lay up for yourselves treasures in heaven, where neither moth nor rust destroys and where thieves do not break in and steal." - Matthew 6:20 "Do not lay up for yourselves treasures on earth, where moth and rust destroy and where thieves break in and steal." - Matthew 6:19

Proverbs 21:5

"The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty."

How does God expect us to be when it comes to organization?

Creative and orderly

The Federal Reserve System was established in ___________________ and was the _____________ attempt by the United States government to establish a central banking system. Unlike its two predecessors, the Federal Reserve System was not limited to a __-year charter by the passing of the__________________. The Banking Act of 1933 established the _____________ to protect the deposits of consumers against bank failure. ______________ financial institutions are members of the Federal Reserve System today.

1913, first, 20, Federal Deposit Insurance Corporation, Some

Which of the following are considered "not for profit" because all profits and surpluses are used to pay for administrative costs and services to members?

Credit unions

Why is it important for everyone with monetary and other assets to have a will? Choose the six answers that apply. Please do not guess, as incorrect answers are penalized for this question type.

Because it relieves loved ones of added responsibility at your death Because it makes sure all possessions and assets will go to those who have been specifically chosen to receive them So loved ones and family will know what you want to do with your possessions and money once you have died Because it benefits those who you wish to bless after you are no longer able to help them in person So the state won't be in control of your estate So others won't have to decide what is best to do with your possessions and money

Why is avoiding penalties and fees at financial institutions important?

Because it shows faithfulness in a little thing (taking care of the money God has entrusted to you)

The "Paradox of Prosperity," according to Ron Blue, means which of the following?

Being prosperous does not always give us the freedom we think it should.

What are some ways to make sure you know what is happening with your money and simplify your financial obligations? Choose the two that apply. Please do not guess, as incorrect answers are penalized for this question type.

Consider consolidation accounts to reduce paperwork and avoid fees Use computer software or internet services offered by your banking institution to track deposits and payments

Shopping online

Deal with reputable merchants and be wary of unbelievably low prices

What are some ways you can withdraw money from your checking account? Choose all that apply. Please do not guess, as incorrect answers are penalized for this question type.

Debit card Paper checks Requesting a cash withdrawal from the bank

What did the Check Clearing for the 21st Century Act, passed in 2004, do to help the banking world?

It promoted the greater use of electronic processing of check images, rather than the return of an actual check.

According to the lesson, what is our ultimate gift?

Knowing Jesus and making Him known to the world

Which could be considered an important part of stewardship?

Learning to properly document your bank accounts

When you have more things and more choices, the paradox of prosperity says this will lead to what?

Less freedom

Which of the following can you do with an ATM card? Choose the three that apply. Please not guess, as incorrect answers are penalized for this question type.

Make deposits Transfer funds between accounts Withdraw cash

trojan horse

Malware disguised as a trusted source that convinces the user to open a link or an attachment and install itself.

virus

Malware that spreads by users from an infected device to the rest of the devices on a network.

We learned in the Ron Blue Institute video that the word "stewardship" literally means management. What area(s), other than our finances, are included in our journey of being good stewards? Choose all that apply.

Our body Our talents Our time The teachings we receive Our relationships

We must purchase things in this world. However, the world's culture makes us feel that we must be driven by which of the following things? Choose all that apply. Please do not guess, as incorrect answers are penalized for this question type.

Significance Security Success

Why is it important to keep a neat check register?

So it can be used to reconcile the monthly bank statement

In his video, what does Ron Blue say that he would expect a millionaire to look like?

Someone with an older car and smaller home

Even though you may not deal with regular income and bills as a teenager, what is still a good idea to do?

Start tracking your finances and keep up with any personal information that you may need when planning for college or entering the workforce.

What are two core concepts to consider when beginning to manage money? Please do not guess, as incorrect answers are penalized for this question type.

Stewardship Contentment

What kind of items should be filed and organized in a central location at your home (such as in a special drawer or file cabinet)? Choose the five that apply. Please do not guess, as incorrect answers are penalized for this question type.

Tax information and forms Bank statements Wills and health directives Statements of bills paid and to be paid Financial records

spam

The unethical distribution of mass digital messages. This is the main way that malware is opened and spread.

Why are financial institutions safe places to keep your money?

They are regulated by federal guidelines and are in business to make money for their depositors, members, and/or stock holders.

What are some typical ways you can make withdrawals from a bank account? Choose the three answers that apply. Please do not guess, as incorrect answers are penalized for this question type.

Withdraw cash at your local branch bank office. Use paper checks to pay for purchases or bills. Use a debit card connected to your account to make purchases.

Consider Matthew 16:26. How can the verse be summarized?

You can keep your earthly treasures or save your soul, but you cannot do both.

In addition to income, you will also have _______ as part of your personal finances.

expenses

compound interest

calculated by adding the principal and the accumulated interest together, then multiplying that total by the rate

simple interest

calculated by multiplying the rate by the principal amount

A _______________ is a paper form that you fill out and use as payment.

check

Personal computer banking lets you handle many banking transactions using your personal __________.

computer

People enjoy using online banking because it is ____________________.

convenient and saves time

A direct withdrawal is an electronic transaction similar to direct deposit, except a direct deposit ________________________.

deposits money into your account while a direct withdrawal takes money out of your account

Credit unions often require members to deposit an amount into their accounts that must be maintained to avoid incurring penalties. This is called a _____________ fee.

membership

You can use your debit card to make purchases _____________________. Choose the three answers that apply. Please do not guess, as incorrect answers for this question type are penalized.

over the phone online in person at a store

If you are using your personal computer to carry out banking transactions, it is important that no one else knows your _____________.

passwords

Regardless of the financial institution you choose, be sure you know how your money is _______________.

protected

A checkbook ________________ is a page or booklet that has ________________ for making entries similar to a ledger. As you write ____________ or make ______________, you can keep up with transactions that affect your account balance.

register, rows and columns, checks, deposits

A debit card purchase or payment transfers money quickly from your bank account to the company's account, so you have to have ________ funds in your account to cover your purchase.

sufficient

In Ron Blue's video that discusses the trailer story, Mr. Blue says _________________ can add complication as we get older.

the amount of choices we have to make