Test 1

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 statements about check-cashing companies is FALSE?

• They offer bad deals where you'll owe a lot more than you borrowed.

• They charge low fees.

• They can take a percentage of your check on top of fees

• They make it easy to fall into a loan cycle that is hard to get out of.

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 most money?

• One that compounds interest daily.

• One that compounds interest monthly.

• One that earns simple interest daily.

• One that earns simple interest monthly.

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.

What should you do before you use an ATM?

• Inspect the ATM and its surroundings to make sure it is safe to use.

• Ask someone nearby for help using the ATM.

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

• Memorize your debit card number because you'll need to type it in at the ATM.

Which of the following statements about savings accounts is FALSE?

• Savings accounts pay interest on the money you deposit.

• Savings accounts limit the number of withdrawals that can be made each month.

• Savings accounts don't usually require a minimum balance.

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