Banking Basics Quiz

All of the following are reasons to open a checking account EXCEPT...

• Making it easier to pay bills

• The ability to make purchases with a debit card

• Access to cash at an ATM

• Saving money for retirement

One difference between a checking account and a savings account is that...

• Checking accounts typically offer higher interest rates

• Savings accounts offer more flexibility for daily purchases

• Checking account balances will typically change frequently

• Savings accounts usually have a debit card and checks

Which of the following statements is TRUE about overdraft fees?

• You are legally required to have overdraft protection for your account

• They are charged if you fail to meet the minimum balance requirement

• You are charged when more money is withdrawn from your account than it has available

• They are a one-time payment made by the bank to the account holder

All of the following are ways that you could potentially avoid a monthly maintenance fee on your account EXCEPT...

• Meeting a monthly minimum balance requirement

• Only banking online instead of using physical bank locations

• Having both a checking and savings account with the same bank

• Finding a bank that offers accounts with no monthly maintenance fee

All of the following are ways to avoid ATM fees EXCEPT...

• Avoiding out of network ATMs

• Finding a bank that reimburses you for ATM fees

• Using your debit card instead of withdrawing cash to make a purchase

• Withdrawing money from your savings account instead of your checking account

Keon receives a $1,000 paycheck. According to the 50/30/20 rule, how much should he put aside for saving?

What is a major benefit of the Pay Yourself First strategy?

• It helps you budget all of your income for the month

• It encourages you to prioritize saving money

• It is a good way to build credit

• It generates additional income to cover essential expenses

Which of the following is an example of online bill pay?

• Using a person-to-person app to repay your friend for dinner

• Using a mobile payment service to purchase your groceries at a store

• Having your bank send your rent to the landlord each month

• Having your check direct deposited into your bank account

Which of the following statements is an advantage of online banking?

• Once you set up online banking, your bank will waive overdraft, ATM, and monthly fees

• Using online banking, you can request transfers, pay bills, and automate your savings without visiting the bank branch

• Online banking is the only way you can make online purchases

• If you set up online banking, your bank will also file your taxes for you automatically

All of the following are ways that you can keep your online bank account safe EXCEPT...

• Only using private wifi to access your account

• Turning on text alerts to monitor your account for large or potentially fraudulent transactions

• Changing your password regularly using reasonably complex passwords

• Banking with small banks and credit unions because they are less frequently the target of fraud