EVERFI Banking Basics

A savings account that compounds interest daily will earn a higher return than a savings account that pays simple interest daily.

Your financial institution can't help you if there is a mistake on your bank account statement.

Which of the following statements about savings accounts is FALSE?

• Savings accounts pay interest on the money you deposit.

• Savings accounts allow an unlimited amount of withdrawals each month.

• Savings accounts may require you to maintain a minimum balance to avoid paying a fee.

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

A _______ is a share of ownership in a company.

• bond

• stock

• mutual fund

• money market account

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.

How would you reconcile your bank account to avoid spending more than you have?

• Contact your financial institution to read your transactions for the past month.

• Compare your own records of your spending with your financial institution's records.

• Review your bank statement once at the end of the month.

• None of the above.

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.

Why is it important to reconcile 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

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

• Checking account

• Savings account

• Money market account

• Certificate of deposit

What should you do before you use an ATM?

• Inspect the ATM and its surroundings to make sure it is safe to use.

• Ask someone nearby for help using the ATM.

• Share your pin number with trusted friends so you don't forget it.

• Memorize your debit card number because you'll need to type it in at the ATM.