Unit 2.1 Study Guide
Name: ________________________
Date: _____________ Period: _____
1. What are the three parts of the Federal Reserve?
1)
2)
3)
2. What are the responsibilities of the Federal Reserve?
3. The primary goal of the Federal Reserve System is to ____________________________________________.
4. What does FDIC stand for? What does it do? Do all banks/credit unions provide it?
5. What are unique features of credit unions?
6. What does NCUA stand for? What does it do? Do all banks/credit unions provide it?
7. What’s the best way to avoid ATM fees?
8. If you need to set up direct deposit, you will need to know your ___________________________________.
9. What are some typical account fees you might see on your bank statement?
10. The most important rule associated with the saving component of financial planning is ________________
_________________________________________, abbreviated _______________.
11. List common banking accounts from most liquid to least liquid.
12. Savings accounts offer ________________ interest rates than checking accounts. It is _________________
to access money in a savings account than in a checking account.
13. How do you ensure the accuracy and safety of your accounts?
14. Why should you monitor your checking account?
15. When it comes to savings vehicles, what should people do?
16. A savings vehicles that requires a high minimum balance is a _____________________________________.
17. What are some types of savings vehicles?
18. Interest is _____________________________________________________________________________.
19. How can you maximize the amount of interest you earn?
20. “Compounding frequency” refers to ________________________________________________________.
21. To earn as much interest as possible you should open a savings account that earns _____________ interest
and has the _______________ interest rate. It also helps to leave money in the account for a ______________
period of time.
22. What is the rule of 72?
23. When would you need to use the rule of 72?
24. What is the simple interest formula?
25. Instead of getting a loan or using a ____________________________ to buy a car, a vacation, or any other
expensive purchase, Dave Ramsey recommends that you ________________ up enough money to buy it.
26. In order to not go into debt when unexpected emergencies pop up, everyone should have an
_______________________ fund. Dave Ramsey recommends that teenagers have a $500 fund, but when you
are an adult it should be for three to ___________ months.
27. John borrowed money to purchase a new car from the dealership. He didn’t listen to Dave Ramsey’s advice
to stay out of ____________.