Banking and Financial Literacy Quiz

What is the primary purpose of checking accounts?

• Accumulating funds

• Everyday transactions

• Earning interest

• Long-term investments

Which type of account is used for accumulating funds?

• Checking account

• Savings account

• Credit account

• Loan account

What is a disadvantage of being unbanked?

• Easy access to credit

• Difficulty making cashless purchases

• High interest rates

• Low transaction fees

What is a characteristic of prepaid cards?

• Linked to a bank account

• Build credit

• Not typically linked to a bank account

• Offer high interest rates

What is the "Pay Yourself First" strategy?

• Spending all income

• Saving a portion of income before other expenses

• Paying bills first

• Investing in stocks

What is the general recommendation for emergency fund savings?

• 1-2 months of expenses

• 3-6 months of expenses

• 7-9 months of expenses

• 10-12 months of expenses

What is a security consideration when using public Wi-Fi for banking?

• No need for security

• Increased risk of fraud

• Faster transactions

• Lower fees

What is a feature of digital banking?

• Physical branch visits

• Online transactions

• High transaction fees

• Limited access to funds

What is the significance of a low balance alert?

• It notifies you when your account balance drops below a certain amount

• It informs you of high interest rates

• It alerts you to new investment opportunities

• It warns you of upcoming loan payments

What is a reason someone might be unbanked?

• Lack of trust in banks

• High interest rates

• Easy access to loans

• High savings interest