EverFi -- Module 1: Banking Basics

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

• Access to investment products or advice

• Paper checks

• Access to ATMS

• Direct deposit

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

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

With which type of savings account will you earn 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.

With which type of savings account will you earn 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

How would you reconcile your bank account to avoid spending more than you have?

• Contact your financial institution to read your transactions for the past month.

• Compare your own records of your spending with your financial institution's records.

• Review your bank statement once at the end of the month.

• None of the above.