Banking Basics Review

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

• Access to investment products

• Paper Checks

• Access to ATMS

• Direct Deposit

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

• Credit Unions

• Brick-and-mortar banks

• Check cashing and payday loan companies

• Internet banks

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 typically offers the least (if any) interest?

• Savings account

• Money Market Account

• Certificate of Deposit

• Checking Account

Which type of account is best for everyday transactions?

• Checking Account

• Savings Account

• Money Market Account

• Certificate of Deposit

Which savings account will likely earn you the MOST money?

• One that earns simple interest monthly

• One that earns simple interest daily

• One that compounds interest monthly

• One that compounds interest daily

What should you do before you approach an ATM?

• Ask someone nearby for help using the ATM

• Take a picture using your debit card so your friends know where you are

• Check the ATM and it's surroundings to make sure it is safe to use

• Inspect the ATM to make sure it wasn't tampered with

Which of the following statements about savings accounts is FALSE?

• Savings account don't usually require a minimum balance

• Savings accounts pay interest on the money you deposit

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

• Savings account may limit the number of withdrawals that can be made each month.

Which of the following statements about stocks is TRUE?

• A stock is a type of debt investment that acts like a loan

• A stock is a type of investment that invests in a mix of different types of investments

• A stock is a type of savings account that pays interest based on current interest rates in the money market

• A stock is a share of ownership in a company

A mutual fund is...

• A type of debt investment that acts like a loan

• A type of investment that invests in a mix of different types of investments

• A type of savings account that pays interest based on current interest rates in the money market

• A share of ownership in a company