Banking Basics Quiz

What is the main purpose of a savings account?

• Pay bills

• Withdraw money easily

• Invest in stocks

• Save money and earn interest

Which type of bank account typically offers the highest interest rates?

• high-yield savings account

• money market account

• certificate of deposit

• checking account

What is the purpose of a checking account?

• The purpose of a checking account is to earn high interest on your savings.

• The purpose of a checking account is to save money for long-term goals.

• The purpose of a checking account is to easily deposit and withdraw money for everyday transactions.

• The purpose of a checking account is to invest in the stock market.

Which of the following is NOT a banking service?

• Credit card

• Mobile phone

• ATM

• Savings account

What is the main advantage of online banking?

• Higher interest rates

• Limited access

• Convenience

• Increased security

Which of the following is a disadvantage of online banking?

• Lack of personal interaction with bank staff

• Higher fees and charges

• Limited access to physical cash

• Security breaches and fraud

What are overdraft fees?

• Fees charged by a bank for depositing money into an account

• Charges imposed by a bank when a customer withdraws more money from their account than is available.

• Charges imposed by a bank for closing an account

• Penalties for not using a bank account

Which of the following is a type of banking fee?

• overdraft fee

• interest rate

• credit limit

• transaction fee

What is the purpose of a money market account?

• The purpose of a money market account is to provide a tax-free investment option with a variable interest rate.

• The purpose of a money market account is to provide a safe and liquid investment option with a higher interest rate.

• The purpose of a money market account is to provide a long-term investment option with a fixed interest rate.

• The purpose of a money market account is to provide a high-risk investment option with a low interest rate.

What is the purpose of a certificate of deposit (CD)?

• The purpose of a certificate of deposit (CD) is to provide a convenient way to access cash quickly.

• The purpose of a certificate of deposit (CD) is to provide a safe and secure way to save money while earning a higher interest rate than a regular savings account.

• The purpose of a certificate of deposit (CD) is to provide a high-risk investment opportunity with potential for high returns.

• The purpose of a certificate of deposit (CD) is to provide a way to borrow money at a low interest rate.