Lesson 1- Banking Basics EverFi

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

• Access to investment products

• Paper checks

• Access to ATMs

• Direct Deposit

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 type of bank account typically offers the least (if any) interest?

• Checking account

• Savings account

• Money market account

• Certificate of deposit

Which type of bank account is best for everyday transactions?

• Checking Account

• Savings Account

• Money Market 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

Why is it important to reconcile your bank statements?

• 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

• All of the above

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

Which of the following statements about investing is TRUE?

• On average, putting money in a savings account earns a higher return than investing money in the stock

  market.

• Investing is riskier than putting money in a savings account.

• Investing is best for short-term financial goals.

• Investing is a guaranteed way to make money.