Checking Account Quiz

What is the primary purpose of a checking account?

• To earn high interest

• To save money for long-term goals

• To manage daily expenses and transactions

• To invest in stocks and bonds

Which of the following is a common way to deposit money into a checking account?

• Writing a check

• Using a debit card

• Direct deposit from an employer

• Paying a bill online

How can you withdraw money from a checking account?

• Using a credit card

• Writing a check

• Making a wire transfer

• Depositing a check

What is one advantage of opening a checking account at a credit union?

• Higher fees

• Lower interest rates on loans

• More branches nationwide

• Higher interest rates on savings

What is one disadvantage of opening a checking account at a credit union?

• Limited access to ATMs

• Higher fees

• Lower interest rates on savings

• Less personalized service

What does FDIC insurance protect?

• The bank's investments

• The bank's employees

• The depositor's money up to a certain limit

• The bank's building and property

What is the current standard insurance amount provided by the FDIC per depositor, per insured bank?

• $100,000

• $250,000

• $500,000

• $1,000,000

Which of the following is typically NOT a component of a bank statement?

• Account balance

• Transaction history

• Interest rate on a mortgage

• Fees charged

What does the term "overdraft" mean in the context of a checking account?

• Depositing more money than the account balance

• Withdrawing more money than the account balance

• Transferring money between accounts

• Earning interest on the account balance

How can you avoid overdraft fees?

• By using a credit card for all purchases

• By keeping track of your account balance

• By writing checks frequently

• By withdrawing cash regularly