Financial Literacy - Banking Basics Lesson 1

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 of the following financial institutions typically have the highest fees?

• Check cashing and payday loan companies

• Credit unions

• Brick-and-mortar banks

• Internet banks

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

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.

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

How can you avoid spending more than what is in your bank account?

• Check your bank statement once a month.

• Ask your financial institution to notify you when you are close to $0 in your account.

• Keep your own records to compare with your financial institution's records.

• None 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.