Banking and Finance Quiz

Which are two advantages of having an account at a local community bank versus a national bank?

• Community banks are typically larger and more well-known than national banks

• Community banks typically have LOWER fees and charges when compared to a national bank

• Community banks typically have HIGHER fees and charges when compared to a national bank

• Community banks typically give back and support the local community

True or False: When you deposit your money at a community or online bank, your money is insured by the FDIC up to $250,000.

• True

• False

What questions should you ask before opening an account at a national bank, community bank, or credit union? (choose all correct answers)

True or False: When calculating the percentages for each budget category, you should use your pre-tax income.

• True

• False

Which strategy will help you save the most money?

• Wait until the end of the month and add any money that you have not spent to your savings account.

• As soon as you receive your paycheck, put a fixed amount or percentage of your money directly into your savings.

• On the last day of each month, deposit a fixed $10 to your savings account.

• Wait to deposit into your savings account only when you have a large lump sum of money.

What is the benefit of automating your savings account contributions?

• You can change the amount you deposit each month.

• The fees are relatively small to enroll in this service.

• Your money will be transferred automatically and guarantees you will be contributing to your savings.

• Your employer will contribute additional money to your savings account if you enroll in this service.

What does it mean to "pay yourself first"?

• Purchase an item you want before something you need.

• Pay all of your mandatory expenses before paying for optional expenses.

• Obtain an additional job to supplement your income.

• Deposit money into your savings account before spending on anything else.

Jamie asks, “What are the latest trends in the stock market?” In other words, Jamie is asking…

• Which companies used to be listed on a particular stock market index? 

• What are the upward and downward patterns of the stock market over a recent period of time?

• How has the stock market performed over the past 10 years?

• How many companies are listed on the stock exchange?

What is the difference between a BULL and a BEAR market?

• A BULL market is when the stock market is rising and the economy is booming, while a BEAR market describes a declining market and a receding economy

• A BULL market is when there is a decline in the stock market and the economy is receding, while a BEAR market describes a rising market and a booming economy.

Which adjective would best describe a BEARish investor attitude?

• Optimistic/Positive

• Pessimistic/Negative