Bank accounts, fees, and protecting yourself from fraud

Grade 12 Social Studies Worksheet - Challenge Me

Circle the best answer.

1. Read this first

   Use this

   Cards A to C on inflation, the federal funds rate and mortgages. Card A, "Prices and the federal funds rate". Compare chart "Prices and the federal funds rate" (U.S. Bureau of Labor Statistics and Board of Governors of the Federal Reserve System, through FRED, retrieved Nov 14, 2026), columns Year | CPI-U (1982-84 = 100) | Effective federal funds rate (%): 2019 | 255.657 | 2.16; 2020 | 258.811 | 0.38; 2021 | 270.970 | 0.08; 2022 | 292.655 | 1.68; 2023 | 304.702 | 5.02; 2024 | 313.689 | 5.14. Note: the CPI-U is a price index: a rise means higher prices. The effective federal funds rate is the rate banks charge each other for overnight loans, the rate the Federal Reserve steers. Both are annual averages. Card B, "The 30-year mortgage rate". Compare chart "The 30-year mortgage rate" (Freddie Mac Primary Mortgage Market Survey, through FRED, retrieved Nov 14, 2026), columns Year | 30-year fixed mortgage rate (%): 2021 | 2.96; 2022 | 5.34; 2023 | 6.81; 2024 | 6.72. Note: each rate is the average of weekly survey values for the year. Card C, "Tomas's loan" (made up). On January 1, 2021, Tomas borrowed $200,000 from a lender at a fixed 3% a year. The rate stays at 3% for the whole loan.

3. 1.

   Ari combines cards A and C. Which statement about Tomas's fixed 3 percent loan in 2022 is best supported?

   • The lender's loan lost real value in 2022: 3 percent against 8.0 percent inflation, real rate near −5
   • The lender gained, since 3 percent beats the 1.68 percent funds rate that year
   • Tomas lost, since each dollar owed became larger when prices rose
   • Nothing changed, since a fixed rate fixes the value of each payment
4. 2.

   A student claims card B shows mortgage rates moved one for one with the federal funds rate in 2021 to 2023. Bo tests it. What is the verdict?

   Use the picture in question 1.

   • Supported: the mortgage rate rose because the Fed raised its rate
   • Not supported: the funds rate rose about 4.9 points but the mortgage rate rose about 3.9
   • Supported: both rates rose together in each year from 2021 to 2023, so they moved one for one
   • Not supported: the mortgage rate rose more than the funds rate
5. 3.

   Esme compares the mortgage rate with price rises for 2022 to 2024. Which claim do cards A and B best support?

   Use the picture in question 1.

   • A new mortgage cost more than inflation in each of the three years, since each rate was above 5 percent
   • Mortgage rates followed inflation down once price rises slowed
   • Mortgage rates were higher in 2023 than in 2022
   • A new mortgage cost less than inflation in 2022 but more than inflation in 2023 and 2024
6. 4.

   Jun wants to test whether higher funds rates cause higher mortgage rates. Which missing evidence would matter most?

   Use the picture in question 1.

   • The funds rate for 2019 and 2020
   • Whether mortgage rates rose before the Fed acted, when lenders expected the rise
   • How many mortgages were signed in each year, as a measure of how many people borrowed
   • Average hourly pay in 2022 and 2023

7. Use this

   Card A on a deposit market (made up). Compare chart "Deposits at an invented bank, by interest rate" (made up for practice), columns Interest rate | Savers supply now ($ millions) | Savers supply after some leave ($ millions) | Banks want now ($ millions) | Banks want after a change ($ millions): 1% | 100 | 40 | 200 | 240; 2% | 120 | 60 | 170 | 210; 3% | 140 | 80 | 140 | 180; 4% | 160 | 100 | 110 | 150; 5% | 180 | 120 | 80 | 120; 6% | 200 | 140 | 50 | 90. Note: made up for practice. The market starts where the first supply column meets the third column. In the first move, banks want more deposits at every rate. In the second move, some savers shift money out of deposits at every rate.

8. 5.

   Kira reads card A. If both moves happen, which result can be known without the sizes of the moves?

   • Deposits must fall, since savers are leaving at each rate
   • The rate must fall, because savers are shifting money out
   • The interest rate rises for certain; the amount of deposits could rise, fall or stay the same
   • Deposits must rise, because banks want more deposits at each rate and will pay up to get them
9. 6.

   Milo asks why deposits ended lower even though banks wanted more. Which claim does card A best support?

   • Banks' extra demand of 40 outweighed the savers' move, so total deposits ended lower than before
   • Whenever savers leave, deposits end lower, whatever banks want
   • Here the savers' move (60 less at each rate) outweighs the banks' (40 more), so the total ends at 120
   • Savers left because the rate rose, which is why deposits ended lower
10. 7.

    A writer claims the higher rate shows savers left for rivals. Noah tests it against card A. What is the verdict?

    • Shown: a higher rate means savers have left this bank for a rival that offered them more on deposits
    • Weakly supported: banks' extra demand also lifts the rate, so the rate alone cannot split the moves
    • Unsupported: the card does not name the rival banks
    • Refuted: deposits fell just a little, so savers did not leave

11. Use this

    Card A, "A balance-transfer offer" (made up). Dani owes $3,000 on Card Old at 24% APR, which is 2% a month. Card New offers a transfer of the $3,000 for a 3% fee ($90, added to the balance), 0% interest for 12 months, then 27% APR, which is 2.25% a month. Card B, "After 12 payments" (calculated from card A). If Dani pays $200 a month for 12 months: Card Old leaves $1,122 owed, and Card New leaves $690 owed. If Dani pays $100 a month for 12 months: Card Old leaves $2,464 owed, and Card New leaves $1,890 owed.

12. 8.

    Pia pays $200 a month on either card. Which statement about the transfer after 12 payments is best supported?

    • The transfer leaves Dani $432 better off after the $90 fee, since Card Old's interest was about $522
    • The transfer costs Dani $90 and saves nothing, since the balance is unchanged after 12 payments of $200
    • The transfer saves $1,122, the balance left on Card Old
    • The transfer saves $90, the amount of the fee
13. 9.

    An ad says the 3 percent fee is the price of the offer. Tala looks for the strongest objection from cards A and B. Which is it?

    • The fee is added to the balance, so it also earns interest from month 13 on, which raises the true price of the offer
    • A 3 percent fee is large, so the offer must cost more than Card Old
    • The price also includes 27 percent on whatever is left after month 12, set against the 24 percent avoided
    • Dani would pay no interest on Card New, so the price is $90
14. 10.

    A website claims balance transfers always save money. Zee tests this against cards A and B. What is the best verdict?

    • Shown: both payment sizes left less owed on Card New, so a transfer saves money for any payment size and any offer
    • Weakly supported: two payment sizes favor it, but the fee, the 27 percent rate and slow payments can reverse it
    • Refuted: the $90 fee means Dani ends up worse off
    • Unsupported: the card does not name the lender