Financial Literacy FINAL EXAM

Front

Which of the following methods have you personally used to put money into your checking account? Direct deposit, Mobile check deposit, ATM deposit, In-person deposit at a bank branch

Back

Direct deposit

Front

Which of the following methods have you personally used to take money out of your checking account? ATM withdrawal, Writing a check, Online transfer, In-person bank withdrawal

Back

ATM withdrawal

Front

When you deposit your money at a community or online bank, your money is insured by the FDIC up to $250,000.

Back

True

Front

Which reason to open an account would benefit you, personally, the most? Options: To save money, To earn interest, To manage expenses, To receive salary

Back

To save money

Front

What is the benefit of making sure your account is FDIC/NCUA insured?

Back

It ensures your deposits are protected up to a certain limit.

Front

Which of the following is usually a benefit of being a member at a credit union? Higher interest rates and lower fees, Lower interest rates and higher fees, Higher interest rates and higher fees, Lower interest rates and lower fees

Back

Higher interest rates and lower fees

Front

Daisy reads her bank statement and finds an error. She should…

Back

Call the bank. The bank will investigate the transaction to see if it was an error.

Front

Which of the following is typically a feature of a savings account but not a checking account? Ability to withdraw money from an ATM, FDIC insured up to $250,000, Your money earns interest, Ease of making payments using a debit card

Back

Your money earns interest

Front

Tyreke has $5,000 to put into an account that earns compound interest. Which of the following is the BEST advice you can offer so that he can maximize interest?
- It’s ok to open an account with low interest rates as long as you deposit your money early
- Deposit your money as early as possible in an account with the highest interest rate possible
- Wait for interest rates to rise above 5%, otherwise compounding doesn’t have any effect
- Compound interest will not have any effect at such a low dollar amount. Find different opportunities to earn interest on your savings.

Back

Deposit your money as early as possible in an account with the highest interest rate possible

Front

Which of the following is TRUE when comparing savings accounts and certificates of deposit? Savings accounts allow you to access your money at all times while certificates of deposit require your money to be left alone for a set period of time, Savings accounts are FDIC insured while certificates of deposit are not, Savings accounts typically have a higher interest rate than certificates of deposit, Both savings accounts and certificates of deposit allow you to deposit money at any time

Back

Savings accounts allow you to access your money at all times while certificates of deposit require your money to be left alone for a set period of time.