Banking Quiz

Which of the following is a false statement?

• Banks are insured by the government.

• Money can be stolen or lost if you keep it at home.

• If your bank goes out of business, you lose your money.

• Your money can grow if you keep it in a bank account.

The amount of money you need to maintain in your account to avoid a fee is the _______.

A credit union is different from a bank mainly because _______.

• your money cannot earn interest in a credit union

• credit unions are in business to make a profit

• credit unions are not insured by the government, so your money is not as safe there

• credit unions invest in the community and often offer classes on opening businesses and managing debt

Which of the following is a way your bank can make money?

• Your bank can charge you a fee for using an ATM from another bank.

• Your bank can charge an annual or monthly fee just for having an account.

• Your bank can charge fees if your balance goes below a certain amount.

• all of the above

Which of the following is a false statement?

• You can purchase items with money from your checking account by using a debit card.

• You can purchase items with money from your checking account by writing a check.

• A debit card can be used to withdraw cash from an ATM.

• A debit card can be used to pay for a purchase if your checking account is empty.

Gustavo writes a check to his landlord for $450, but he only has $300 in his checking account. What will happen?

• Nothing.

• The check will bounce, or fail to process.

• The bank will owe Gustavo's landlord $150.

• Gustavo will save $150 on his rent that month.

Sylvia deposits $50 into a savings account with a 2% interest rate. Using the formula for simple interest, how much will she have in the account in 5 years?

• $55.00

• $45.00

• $60.00

• $550.00

Once a month, Eddie cashes his paycheck at a check cashing service that charges a 1% fee. If Eddie gets paid $500 per month, which of the following will be true?

• Eddie takes home $550 each month.

• Eddie pays $10 in fees every month.

• Eddie pays $5 in fees every month.

• Eddie takes home $505 every month.

Brendan has $200 in a savings account with a 1% interest rate. Using the formula for simple interest, how much will he earn in interest after 7 years?

• $140

• $14

• $1.40

• $40

Josie has $100 in a savings account with a 2% interest rate. Using the formula for simple interest, how much will she earn in interest after 7 years?

• $140

• $14

• $1.40

• $40