Financial Planning Test Review

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 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.

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

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 record.

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

• None of the above.

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.

If there is an issue with your bank statement or account balance, who should you contact to resolve the issue?

• The local police station

• Your bank

• The CFPB

• All of the above

A _____ is a share of ownership in a company.

• bond

• stock

• mutual fund

• money market account

There is no relationship between the level of education received and lifetime earnings.

• True

• False