Behavioral Economics and Banking Quiz

All of the following are reasons to open a checking account EXCEPT...

• Making it easier to pay bills

• The ability to make purchases with a debit card

• Access to cash at an ATM

• Saving money for retirement

Tyreke has $5,000 to put into an account that earns compound interest. Which of the following is the BEST advice you can offer so that he can maximize interest?

• It’s ok to open an account with a low interest rate as long as you deposit your money early

• Deposit your money as early as possible in an account with the highest interest rate possible

• Wait for interest rates to rise above 5%, otherwise compounding doesn’t have any effect

• Compound interest will not have any effect at such a low dollar amount. Find different opportunities to earn interest on your savings.

What is the most frequently charged fee on checking accounts?

• ATM fees

• Overdraft fees

• Monthly maintenance fees

• Statement fees

All of the following are ways that you could potentially avoid a monthly maintenance fee on your account EXCEPT...

• Meeting a monthly minimum balance requirement

• Only banking online instead of using physical bank locations

• Having both a checking and savings account with the same bank

• Finding a bank that offers accounts with no monthly maintenance fee

All of the following are ways to avoid ATM fees EXCEPT...

• Avoiding out of network ATMs

• Finding a bank that reimburses you for ATM fees

• Using your debit card instead of withdrawing cash to make a purchase

• Withdrawing money from your savings account instead of your checking account

Keon receives a $1,000 paycheck. According to the 50/30/20 rule, how much should he put aside for saving?

• $100

• $200

• $500

• $1,000

What is a major benefit of the Pay Yourself First strategy?

• It helps you budget all of your income for the month

• It encourages you to prioritize saving money

• It is a good way to build credit

• It generates additional income to cover essential expenses

How much money should you try to save in your emergency fund?

• 3-6 days worth of expenses

• 3-6 weeks worth of expenses

• 3-6 months worth of expenses

• 3-6 years worth of expenses

Which of the following is an example of online bill pay?

• Using a person-to-person app to repay your friend for dinner

• Using a mobile payment service to purchase your groceries at a store

• Having your bank send your rent to the landlord each month

• Having your check direct deposited into your bank account

Which of the following statements is an advantage of online banking?

• Once you set up online banking, your bank will waive overdraft, ATM, and monthly fees

• Using online banking, you can request transfers, pay bills, and automate your savings without visiting the bank branch

• Online banking is the only way you can make online purchases

• If you set up online banking, your bank will also file your taxes for you automatically