Financial Basics Quiz

Which type of savings account typically offers the highest interest rate?

• Regular savings account

• Money market account

• Certificate of deposit (CD)

• Checking account

Tags

DOK Level 2: Skill/Concept

What is a key difference between a savings account and a checking account?

• Savings accounts typically offer higher interest rates

• Checking accounts are only for businesses

• Savings accounts have no withdrawal limits

• Checking accounts do not allow deposits

Tags

DOK Level 2: Skill/Concept

Which of the following is a benefit of using a money market account over a regular savings account?

• Higher interest rates

• Unlimited transactions

• No minimum balance requirement

• No interest earned

Tags

DOK Level 2: Skill/Concept

What is the main difference between a debit card and a credit card?

• Debit cards allow you to borrow money from the bank

• Credit cards require a PIN for every transaction

• Debit cards use funds directly from your bank account

• Credit cards do not have spending limits

Tags

DOK Level 2: Skill/Concept

When using a credit card, what is the best practice to avoid paying interest?

• Make the minimum payment each month

• Pay off the full balance each month

• Use the card only for large purchases

• Avoid using the card altogether

Tags

DOK Level 2: Skill/Concept

Which of the following is a benefit of having a high credit score?

• Higher interest rates on loans

• Easier approval for rental applications

• More frequent bank fees

• Lower credit limits

Tags

DOK Level 2: Skill/Concept

Which type of savings account typically requires you to keep your money in the account for a fixed period of time?

• Regular savings account

• Money market account

• Certificate of deposit (CD)

• Checking account

Tags

DOK Level 2: Skill/Concept

What is a key feature of a high-yield savings account?

• It offers a higher interest rate than a regular savings account

• It has no minimum balance requirement

• It allows unlimited withdrawals

• It does not earn any interest

Tags

DOK Level 2: Skill/Concept

Which of the following is a disadvantage of using a credit card?

• It helps build your credit score

• It offers rewards and cashback

• It can lead to high-interest debt if not managed properly

• It provides purchase protection

Tags

DOK Level 2: Skill/Concept

What is the primary purpose of a savings account?

• To provide a place to store money for short-term needs

• To earn interest on deposited funds

• To facilitate daily transactions

• To borrow money from the bank

Tags

DOK Level 2: Skill/Concept