Banking and Financial Literacy Quiz

FDIC Insurance is...

• Insurance bank branches can buy to protect their business against fraud and scams

• Required if you want to do online or mobile banking

• Protection for bank customers’ deposits up to $250,000, guaranteeing their money is still available if the bank goes out of business

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 allows you to earn a higher interest rate

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

Which of the following transactions will REDUCE your checking account balance immediately?

• Writing your monthly rent check which you will mail tomorrow

• Using your debit card to pay for groceries at the supermarket

• Using your credit card to pay for your school books

• Wait a week as it is fairly common for the bank to catch mistakes like this

• Check her wallet to be sure her debit card has not been stolen. If she still has it, then she should not worry.

• Contact her bank immediately as it appears that her account may have been hacked

Fill in the blanks with the correct responses. If you follow the 50-30-20 rule of budgeting, you'll be putting 50% of your monthly income toward ____________, 30% of your monthly income toward ____________, and 20% of your monthly income toward ____________.

• Needs, wants, savings

• Savings, needs, wants

• Needs, savings, wants

Which of the following is a benefit of using a debit card over a credit card?

• Debit cards help you avoid debt since you can only spend what you have

• Debit cards offer better rewards and cashback options

• Debit cards allow you to build credit history

Which of the following is a common feature of online banking?

• Access to physical bank branches 24/7

• Ability to transfer funds between accounts instantly

• Requirement to visit the bank for all transactions

Which of the following is an effective strategy for personal saving?

• Wait until the end of the month and save whatever is left in your checking account

• Save a certain percentage of each paycheck and deposit it directly into a savings account

• Cover all of your wants and needs and save whatever is left over

All of the following are benefits of using a checking account EXCEPT...

• Multiple options for using funds to make payments

• Checking accounts act as a good savings vehicle

• Access to cash via ATMs

Which of the following is a reason to use a savings account rather than a checking account?

• Easy access to funds for daily transactions

• Unlimited check writing privileges

• Higher interest rates on deposits