Banking Basics Quiz

What is the primary purpose of a checking account?

• To invest in stocks

• For everyday spending and easy access to cash

• To save money for the future

• To earn high interest

What is a key feature of a savings account?

• Directly linked to a debit card

• Earns interest over time

• Used for daily expenses

• Unlimited withdrawals

What do you need to open a bank account?

• A credit card

• A job offer letter

• A bank statement

• A government-issued ID and proof of address

What is compound interest?

• Interest earned only on the original deposit

• Interest earned on the original deposit plus previously earned interest

• Interest that decreases over time

• A fee charged by the bank

Why is it important to regularly check your bank statement?

• To apply for loans

• To see how much money you can spend

• To track spending and catch errors

• To find out your credit score

What is a common fee associated with overdrawing your account?

• Monthly maintenance fee

• Overdraft fee

• ATM fee

• Transaction fee

What should you avoid when using an ATM?

• Checking your balance

• Using it in dimly lit or isolated areas

• Withdrawing cash

• Using it during the day

What is a benefit of saving for a college fund?

• To invest in stocks

• To travel abroad

• To reduce future student loans

• To buy a new car

What is a safe practice when using mobile banking?

• Using public Wi-Fi to log in

• Sharing your password with friends

• Logging in from any device

• Using strong, unique passwords

What is the purpose of a debit card?

• To earn rewards points

• To save money for future expenses

• To borrow money from the bank

• To access funds directly from your checking account