New Personal Finance Final

Which of the following is NOT a common feature of a financial institution?

• Access to ATMs

• Investment trading

• Direct deposit

• Debit cards

Which of the following statements about check cashing companies is TRUE?

• They have limited operating hours during the day.

• They sometimes offer free services.

• They charge high fees.

• They delay when you can access your cash.

Which of the following financial institutions typically have the highest fees?

• Check cashing and payday loan companies

• Credit unions

• Brick-and-mortar banks

• Internet banks

Savings accounts typically offer more interest than what type of account?

• Retirement account

• Money market account

• Checking account

• Certificate of deposit

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

simple interest daily.

• TRUE

• FALSE

Which savings account will earn you the least money?

• One that compounds interest daily.

• One that earns simple interest monthly.

• One that earns simple interest daily.

• One that compounds interest monthly.

Which savings account will earn you the most money?

• One that compounds interest daily.

• One that compounds interest monthly.

• One that earns simple interest daily.

• One that earns simple interest monthly.

What should you do before you withdraw money from the ATM?

• Ask someone nearby for help using the ATM.

• Find a hidden ATM so no one will see you withdraw money.

• Inspect the ATM to make sure it wasn't tampered with.

• Share your pin number with trusted friends so you don't forget it.

Which of the following statements about savings accounts is FALSE?

• Savings accounts pay interest on the money you deposit.

• Savings accounts allow an unlimited amount of withdrawals each month.

• Savings accounts may require you to maintain a minimum balance to avoid paying a fee.

• Savings accounts are best used to store money for longer-term goals.

If there is a mistake with one of your bank accounts, who should you contact to resolve the issue?

• The CFPB

• No one, you can't resolve the issue

• The local police station

• Your financial institution