Understanding Banking and Finance # Quiz

What is the main purpose of a debit card?

• To take out a loan

• To deposit cash only

• To make payments directly from a bank account

• To earn interest on savings

Which of the following is an example of a financial institution?

• Grocery store

• Credit union

• Hardware store

• ATM

A checking account is mainly used for:

• Buying stocks

• Long-term savings

• Paying bills and making everyday purchases

• Earning compound interest

What is a PIN (Personal Identification Number) used for?

• Writing checks

• Signing documents

• Securing access to your debit card

• Calculating interest

What does the term interest refer to?

• The total amount of money you earn at your job

• A fee charged or earned for borrowing or saving money

• The money spent on goods and services

• A deposit made to a checking account

A savings account is:

• Used for everyday transactions

• An account that earns interest and is used to hold money for the future

• A type of loan

• A method of online payment

An ATM is:

• A place to buy groceries

• A machine that allows deposits and withdrawals without visiting a bank branch

• A type of credit card

• A form of online banking

A credit card is:

• A card used to borrow money from the bank to buy goods or services

• A card that only allows you to spend money you have

• A type of savings account

• A method to earn interest

Online banking is:

• A service that allows banking activities over the Internet

• A type of savings account

• A method of earning interest

• A form of loan

A loan is:

• A deposit made to a checking account

• Money borrowed that must be repaid with interest

• A type of savings account

• A method of online payment