Ramsey - Chapter 8 - Lesson 1 (Quiz)

What does it mean to be "unbanked"?

• Having multiple bank accounts

• Having no bank accounts

• Having a credit card

• Having a savings account

What does "underbanked" mean?

• Having no financial knowledge

• Having a bank account but relying on other financial services

• Having multiple credit cards

• Having only a savings account

What should you look for to ensure your money is insured in a bank?

• Bank's interest rates

• FDIC or NCUA logos

• Bank's location

• Bank's size

What happens if a bank insured by the FDIC is shut down?

• All money is lost

• Deposits are insured up to $250,000

• Only savings accounts are protected

• Loans are forgiven

What might prevent someone from passing the background check required to open a bank account?

• Lack of services

• Distrust

• Unemployment

• Blacklisted

What is a potential consequence of using check cashing services?

• High interest rates

• Fees for getting cash

• Collateral requirements

• High refund fees

What do tax refund lenders charge over 10% of?

• The loan amount

• The refund total

• The paycheck

• The collateral value

What do pawn shop loans require as a condition for providing cash?

• High interest rates

• Collateral

• A paycheck

• A bank account

What is a potential risk of using alternative financial services?

• Increased savings

• Access to more financial products

• Higher fees and interest rates

• Improved credit score

What is a potential disadvantage of using payday loans?

• Low interest rates

• Short repayment terms

• Improved credit score

• Access to savings accounts