Banking Basics

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

• access to investment products

• paper checks

• direct deposit

• access to ATMs

Which of the following financial institutions typically have the highest fees?

• Check cashing and payday loan companies

• Brick-and-mortar banks

• Credit unions

• Internet banks

Tags

CCSS.RI.8.2

CCSS.RL.11-12.2

CCSS.RL.7.1

CCSS.RL.8.1

CCSS.RL.9-10.2

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

• checking account

• savings account

• money market 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

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

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 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.

Which of the following statements is TRUE?

• If there is a mistake on one of your bank accounts, there is nothing you can do about it.

• If there is a mistake on one of your bank accounts, you should wait 30 days as these issues tend to resolve themselves.

• If there is a mistake on your bank account, you should contact your financial institution immediately.

• None of the above

Tags

CCSS.RI.11-12.3

CCSS.RI.11-12.5

CCSS.RI.8.3

CCSS.RI.9-10.3

CCSS.RI.9-10.5

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 a savings accounts.

• Investing is best for short-term financial goals.

• Investing is a guaranteed way to make money.

Tags

CCSS.RI.7.2

CCSS.RI.8.2

CCSS.RL.11-12.2

CCSS.RL.8.1

CCSS.RL.9-10.2