Banking TEST

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 is NOT a common feature of a financial institution?

• direct deposit

• paper checks

• access to investment advice

• checking and savings accounts

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.

Savings accounts typically offer more interest than what type of account?

• retirement account

• money market account

• checking account

• certificate of deposit (CD)

Which type of bank account is best for everyday transactions?

• checking account

• savings account

• money market account

• certificate of deposit (CD)

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 intrest monthly

• one that earns simple interest daily

• one that earns simple interest monthly

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

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.