Study Guide for Exam 3
What is electronic banking?
Define electronic banking.
Describe several electronic fund transfer services.
List consumer protections under the Electronic Funds Transfer Act.
Compare types of electronic currency.
What information must be included in periodic EFT statements from your
financial institution, and why is it important for consumers to check this
information for accuracy as soon as possible after receipt?
Describe smart cards and give examples of what they can do.
Electronic banking
What is a "stored value card?"
Explain your potential financial loss if you lose your EFT card.
Explain the stop payment privileges with an EFT card.
Checking
What are some of the fees associated with checking accounts (both expected
and non-expected)?
Why do some people not have checking accounts?
What is the basic difference between a bank and a credit union?
What's a Check?
What are advantages of on-line banking for consumers?
What are the advantage of on-line banking for banks?
What is the "key" to getting people to bank on-line?
Insuring Your Deposits
What is FDIC insurance?
What does FDIC insurance cover? What types of accounts are covered?
What is the amount of FDIC insurance coverage?
Checking accounts
What percent of transactions involving money are made with checks?
Describe each of the types of checking accounts.
Guaranteed and special checks
Describe each type of guaranteed checks.
Why are these types of checks called "guaranteed?"
The rule of 72
Know how to apply the Rule of 72.
Savings: key to success
What is the fundamental building block to personal prosperity?
Discuss ways you can free up money for contribution to your savings account.
Savings/Investing
What are the four (some make it five) steps to wealth discussed in class
(content modules)?
What is the difference between saving and investing? Be able to give
examples of each.
What is the time value of money?
What questions should you ask about a form of savings?
Credit
What is the difference between one cycle and two cycle billing?
Describe various pitches and hitches associated with credit card offers.
What is included in the Schumer box?
What are some of the different types of credit people use? Be able to
give examples.
Why is it important to maintain a good credit history/credit report?
What type of credit card user are you and what characteristics of a credit card
are important to you?
Be able to list advantages and disadvantages of having and using credit cards.
Choosing a Credit Card
Explain the key credit terms to consider when selecting a credit card.
How will you use your credit card, how does this affect the card you should
get?
What are the three different types of cards?
What is a credit score?
What is credit scoring?
How does credit scoring benefit the public?
Explain the general factors that influence a credit score.
How can you improve your credit score?
Cosigning a loan
When you cosign a loan, to what are you agreeing?
What should you do before you cosign a loan?
Please note:
These questions are just guides to help you recognize relevant information in
the readings. It would be in your best interest to also know the answers to
study questions associated with any of the above articles. Tests will cover the
articles listed above and in the course schedule AND class discussions (content
modules for the on-line classes).
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