Financial Terms Quiz

What happens when you use a debit card?

• There’s a small service fee for withdrawing cash from an out-of-network ATM.

• You earn cashback rewards for every purchase.

• The purchase amount is directly deducted from your bank account.

• You can make purchases and pay for them later.

What is the purpose of having health insurance?

• To earn cashback rewards for medical expenses.

• To secure a mortgage for buying a house.

• To deduct medical expenses from your bank account.

• To provide peace of mind in case of unexpected medical expenses.

What does creating a monthly budget help you with?

• Paying off credit card debt.

• Initiating a money transfer from your checking to savings account.

• Earning interest on your savings account.

• Managing your finances effectively.

Why did she take out a student loan?

• To cover her college tuition.

• To withdraw cash from an out-of-network ATM.

• To increase her savings.

• To make purchases and pay for them later.

What does the interest on a savings account do?

• Deducts money from your bank account.

• Provides peace of mind in case of unexpected medical expenses.

• Helps it grow over time.

• Tracks your spending.

Why should you check your bank statement regularly?

• To earn cashback rewards for every purchase.

• To deduct medical expenses from your bank account.

• To track your spending.

• To secure a mortgage for buying a house.

What does it mean to initiate a money transfer?

• To track your spending.

• To move money from one account to another.

• To deduct medical expenses from your bank account.

• To earn cashback rewards for every purchase.

What should you do before your trip?

• Make a deposit at the bank.

• Open a savings account.

• Create a monthly budget.

• Withdraw some cash.

What does making a deposit at the bank do?

• Helps your savings account grow over time.

• Deducts money from your bank account.

• Tracks your spending.

• Increases your credit card debt.

What does the account balance show?

• How much credit card debt you have.

• How much money you have available.

• How much cash you withdrew from an out-of-network ATM.

• How much interest you earned on your savings account.