Banking Basics Quiz

Which type of bank account typically offers no interest but provides unlimited transactions?

• Savings account

• Checking account

• Certificate of deposit

• Loan account

Tags

DOK Level 2: Skill/Concept

What is a primary advantage of using a savings account over a checking account?

• Higher interest rates

• Unlimited withdrawals

• No monthly fees

• Direct bill payments

Tags

DOK Level 2: Skill/Concept

A Certificate of Deposit (CD) requires that you leave your money in the bank for:

• A fixed period of time

• An indefinite period of time

• Less than a month

• As long as you want without any restrictions

Tags

DOK Level 2: Skill/Concept

Which financial institution type traditionally focuses on customer service and community involvement?

• Commercial banks

• Credit unions

• Online banks

• Investment banks

Tags

DOK Level 2: Skill/Concept

What is a common consequence of living paycheck to paycheck?

• Increased savings

• Investment in stocks

• Difficulty in handling unexpected expenses

• Higher credit scores

Tags

DOK Level 2: Skill/Concept

Which account is best suited for setting aside money for emergencies?

• Checking account

• Savings account

• Certificate of deposit

• Brokerage account

Tags

DOK Level 2: Skill/Concept

What distinguishes a checking account from a savings account in terms of accessibility?

• Checking accounts typically have higher interest rates.

• Savings accounts allow unlimited check writing.

• Checking accounts offer more frequent access to funds.

• Savings accounts are primarily online.

Tags

DOK Level 2: Skill/Concept

Why might someone choose a Certificate of Deposit over a savings account?

• For higher liquidity

• For a potentially higher interest rate

• For the ability to withdraw money at any time

• For linked debit card services

Tags

DOK Level 2: Skill/Concept

Which type of financial institution is typically owned by its members?

• Savings and Loan Association

• Credit Union

• Commercial Bank

• Investment Bank

Tags

DOK Level 2: Skill/Concept

What is a disadvantage of using a checking account for long-term savings?

• High minimum balance requirements

• Limited number of transactions

• Lower interest rates compared to savings accounts

• High annual fees

Tags

DOK Level 2: Skill/Concept