Financial Literacy FINAL EXAM

Which of the following methods have you personally used to put money into your checking account?

• Direct deposit

• Mobile check deposit

• ATM deposit

• In-person deposit at a bank branch

Which of the following methods have you personally used to take money out of your checking account?

• ATM withdrawal

• Writing a check

• Online transfer

• In-person bank withdrawal

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

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

• True

• False

Which reason to open an account would benefit you, personally, the most?

• To save money

• To earn interest

• To manage expenses

• To receive salary

What is the benefit of making sure your account is FDIC/NCUA insured?

• It guarantees a fixed interest rate.

• It provides insurance against theft.

• It ensures your deposits are protected up to a certain limit.

• It offers higher returns on investments.

Which of the following is usually a benefit of being a member at a credit union?

• Higher interest rates and lower fees

• Lower interest rates and higher fees

• Higher interest rates and higher fees

• Lower interest rates and lower fees

Daisy reads her bank statement and finds an error. She should…

• Do nothing. The bank will correct the error at the end of the month.

• Call the FDIC. She is insured up to $250,000.

• Call the bank. The bank will investigate the transaction to see if it was an error.

• Assume that it’s a transaction that she made and forgot about.

Which of the following is typically a feature of a savings account but not a checking account

?

• Ability to withdraw money from an ATM

• FDIC insured up to $250,000

• Your money earns interest

• Ease of making payments using a debit card

Tyreke has $5,000 to put into an account that earns compound interest. Which of the following is the BEST advice you can offer so that he can maximize interest?

• t’s ok to open an account with a

  low interest rates as long as you deposit your money early

• Deposit your money as early as possible in an account with the highest interest rate possible

• Wait for interest rates to rise above 5%, otherwise compounding doesn’t have any effect

• Compound interest will not have any effect at such a low dollar amount. Find different opportunities toearn interest on your savings.