Financial Literacy Test Review

Front

Which type of bank account typically offers the least (if any) interest? Options: checking account, savings account, money market account, certificate of deposit

Back

checking account

Front

A savings account that compounds interest daily will earn a higher return than a savings account that pays simple interest daily.

Back

True

Front

Why is it important to reconcile your bank statements?

Back

To avoid spending more than what is in your account, To detect any errors in your account, To determine if you were charged any fees.

Front

Which of the following statements about savings accounts is FALSE?
Savings accounts pay interest on the money you deposit.
Savings accounts may require you to maintain a minimum balance to avoid a fee.
Savings accounts are best used to store money for longer-term goals.
Savings accounts allow an unlimited amount of withdrawals each month.

Back

Savings accounts allow an unlimited amount of withdrawals each month.

Front

If there is an issue with your bank statement or account balance, who should you contact to resolve the issue?

Back

Your bank

Front

investing is best for

Back

long-term financial goals, like paying for retirement

Front

A ______ is a share of ownership in a company.

Back

stock

Front

Which of the following should NOT be considered when setting a current budget?
Your financial goals,
Needs and wants,
Savings

Back

Future income

Front

In addition to needs, what should you plan for first when creating a budget?

Back

recurring expenses

Front

Which of the following is NOT a good way to track your spending?
Options:
In your head,
Notebook and pencil,
envelop method,
online software or app

Back

In your head