QFS Final 2022

Which type of account is typically the most liquid?

• Checking account

• Savings account

• Certificate of Deposit

• Exchange Traded Fund

ATM is a machine where you

• Use your credit card to pull money out of your checking account

• Use your debit card to pull money out of your checking account

• Use your bank account number to pull money out of your checking account

Which type of bank account is best for everyday transactions?

• Checking Account

• Savings Account

• Money Market Account

• Certificate of Deposit

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 these

When using a debit card, you are pulling money out of your...?

• Loan account

• Credit card account

• Savings account

• Checking Account

What is interest?

• The money you earn from a job or a career

• It is calculated as a percentage of a sum of money

• Banks can pay you interest for letting them use the money you deposit.

• Financial institutions can charge you interest for the privilege of using their money.

Which of the following statements about savings accounts is true? (Choose all that apply)

• Savings accounts pay interest on the money you deposit.

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

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

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

Does a savings or checking account TYPICALLY earn more money?

• Savings

• Checking

Which of the following statements about investing is TRUE?

• On average, putting money in a savings account earns a higher return than investing money in the stock

  market.

• Investing is riskier than putting money in savings accounts.

• Investing is best for short-term financial goals.

• Investing is a guaranteed way to make money.

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.