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

• Traditional Savings Account

• Certificate of Deposit

• Money Market Account

• Checking Account

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

• Retirement account

• Money market account

• Checking 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

Which savings account will earn you the least money?

• One that compounds interest daily.

• One that earns simple interest monthly.

• One that earns simple interest daily.

• One that compounds interest monthly.

Which savings account will earn you the most money?

• One that compounds interest daily.

• One that compounds interest monthly.

• One that earns simple interest daily.

• One that earns simple interest monthly.

Why is it important to reconcile (check what you think with what the banks says) 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 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.

What should you do before you approach an ATM?

• Make sure it is hidden so no one will see you withdraw money.

• Ask someone nearby for help using the ATM.

• Share a picture of your debit card with your friends.

• Check for any suspicious people lurking nearby.