Pete sets aside $50 each month from his earnings to have money for a car down payment. Of the following choices, what is the best way for him to store the money each month until he meets his goal for a down payment?

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	Keep the money in a good hiding place at home so it doesn’t get stolen.
B	Deposit the money into his savings account.
C	Deposit the money into his checking account.
D	Purchase another share of his favorite stock.

Explanation:

Detailed explanation-1: -Checking accounts are better for regular transactions such as purchases, bill payments and ATM withdrawals. They typically earn less interest-or none. Savings accounts are better for storing money. Your funds typically earn more interest.

Detailed explanation-2: -When you use a debit card, you give your bank permission to immediately remove money from your bank account. You can replace a lost unused gift card by requesting a replacement card from the same business. Credit unions and banks provide the same types of financial services.

Detailed explanation-3: -Using a debit card is also easier and faster than writing a check. It’s a good way to pay for purchases without having to pay interest, as you would if using a credit card with an outstanding balance. You can even use your debit card to get cash when you make purchases at a store.

Detailed explanation-4: -If you “bounce” a check when your make a purchase at a clothing store, what could happen? You could be charged a fee by the store.

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