Financial Literacy Test Review

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

• 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

Which of the following statements about savings accounts is FALSE?

• Savings accounts pay interest on the money you deposit.

• Savings accounts may require you to maintain a minimum balance to avoid a fee.

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

• Savings accounts allow an unlimited amount of withdrawals each month.

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

• The local police

• Your bank

• The CFPB

• All of the Above

investing is best for

• short-term financial goals, like building an emergency fund

• earning a little interest while keeping your money safe

• long-term financial goals, like paying for retirement

• guaranteed fast growth on your money

A ______ is a share of ownership in a company.

• bond

• stock

• mutual fund

• money market account

Which of the following should NOT be considered when setting a current budget?

• Your financial goals

• Future income

• Needs and wants

• Savings

In addition to needs, what should you plan for first when creating a budget?

• possible charitable contributions

• shopping money

• investments

• recurring expenses

Which of the following is NOT a good way to track your spending?

• In your head

• Notebook and pencil

• envelop method

• online software or app