Financial Literacy Intro

Which of the following is a false statement?

• Banks are insured by the government.

• Money can be stolen or lost if you keep it at home.

• If your bank goes out of business, you lose money.

• Your money can grow if you keep it in a bank account.

The amount of money you need to maintain in your account to avoid a fee is the

• principal balance

• minimum balance

• annual fee

• interest rate

A credit union is different from a bank mainly because

• your money cannot earn interest in a credit union

• credit unions are in business to make a profit

• credit unions are not insured by the government, so your money is not as safe there

• credit unions invest in the community and often offer classes on opening businesses and managing debt

Which of the following is a way your bank can make money?

• Your bank can charge you a fee for using an ATM at another bank.

• Your bank can charge an annual or monthly fee just for having an account.

• Your bank charges fees if your balance goes below a certain amount.

• All of the above

Which of the following is a false statement?

• A debit card can be used to pay for a purchase if your checking account is empty.

• You can purchase items with money from your checking account by writing a check.

• A debit card can be used to withdraw cash from an ATM.

• You can purchase items with money from your checking account by using a debit card.

Gustavo writes a check to his landlord for $450, but he only has $300 in his checking account. What will happen?

• Nothing

• The check will bounce, or fail to process.

• The bank will owe Gustavo's landlord $$150.

• Gustavo will save $150 on his rent for that month.

When you put money in a bank

• it can grow

• you can never access it

• the government can steal it

• it can disappear

Victor wants to earn high interest. Which of these is the best option for him?

• checking account

• hiding the money under his bed

• savings account

• a check casher

A savings account with what type of interest can earn Jamie the most money?

• fixed

• simple

• compound

Renee's money was shrinking. Why?

• because she owed her bank interest on a loan

• because she was paying a fee at a check casher

• because she overdrafted her savings account

• because she lost her pay checks