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Basic Banking

Total questions: 45

Worksheet time: 28mins

Name
Class
Date
1.

An account you can deposit money into and then write checks or use debit card to withdraw money is known as a ____________________.

a)

Money Market

b)

Checking

c)

Savings

d)

ATM

2.

Putting money into an account is known as _______________.

a)

Sinking

b)

Placing

c)

Withdrawing

d)

Depositing

3.

Which of the following about Debit cards is NOT true?

a)

They take money straight out of your bank account

b)

You can be charged for using your debit card to take money out of another bank's ATM.

c)

Some banks have a limit on how much you can purchase with your debit card in a day.

d)

You never have to be concerned with someone committing fraud against your debit card.

4.

What is this paper?

a)

It's a tax return paper

b)

It's a credit card statement

c)

It's a bank statement

5.

Account where money is kept for you to spend

a)

Deposit

b)

Withdrawal

c)

Checking account

6.

Account where you save money for the future

a)

Checking account

b)

Savings Account

c)

Deposit

7.

To put money into your bank account

a)

Withdrawal

b)

Deposit

c)

Balance

d)

Account

8.

To take money OUT of your bank account

a)

Withdrawal

b)

Deposit

c)

Bank

d)

Account

9.

Which of the following best describes a LOAN?

a)

Money borrowed that can be paid back if one feels like it.

b)

Money borrowed

c)

Money borrowed with the expectation of paying it back in a timely manner.

d)

Money gifted to someone with no expectation of payback.

10.

Which of the following is not a characteristic of a SAVINGS ACCOUNT?

a)

Safe place to store money

b)

Owners can write checks from the money in the account

c)

Money is protected by Federal Insurance

d)

Money gains interest over time

e)

Great way to save for something you want or an emergency

11.

The amount of money in an account can be defined as:

a)

Your Dough

b)

Money Level

c)

Account Amount

d)

Account Balance

12.

When you make a purchase and have the funds taken directly from your checking account, you use a ___________.

a)

credit card

b)

note from your mother

c)

debit card

d)

driver's license

13.

Liam wants cash from his bank, but it is closed, He will use the ATM. What does he need?

a)

credit card

b)

debit card

c)

savings account

14.

Tyler works part time. He wants to have money for college when he graduates so he won't have to borrow money. What does he need?

a)

credit card

b)

debit card

c)

savings account

15.

Liz received $100 for her birthday. Eventually, she wants to make a down payment on a car, so she wants to earn as much interest on her cash as possible. What does she need?

a)

savings account

b)

checking account

c)

personal loan

16.

A record of your checking account transactions is called a ___________________.

a)

checking account

b)

electronic funds transfer

c)

credit union

d)

check register

17.

Signing your name on the back of a check in order to receive the amount of money written on the front of the check.

a)

withdrawal

b)

endorse

c)

deposit

d)

reconcile

18.

The transfer of money from one bank account to another by electronic means is called an _________________.

a)

electronic funds transfer

b)

credit union

c)

automatic teller machine

d)

check register

19.

This allows you to manage your money from a computer with internet access.

a)

electronic funds transfer

b)

checking account

c)

debit card

d)

online banking

20.

A _____________ is a card that you can use to withdraw money directly from your checking account.

a)

gift card

b)

credit card

c)

debit card

d)

prepaid card

21.

Use the above figure to answer the following: The first set of numbers (74894934) on the check represents the:

a)

Bank account number

b)

Check number

c)

Bank routing number

d)

Member number

22.

Use the above figure to answer the following: The set of numbers (101) on the top-right of the check represents the:

a)

Check number

b)

Bank account number

c)

Member number

d)

The bank routing number

23.

Designed for banking customers who have access to a smartphone or tablet

a)

Online banking

b)

Mobile banking

c)

ATM

d)

Debit Cards

24.

What do you fill out when you want to put money in the bank?

a)

check

b)

deposit slip

c)

ticket

d)

form

25.

A sum of money borrowed for a certain amount of time is called a....

a)

loan

b)

down payment

c)

interest

d)

borrow

26.

When you take out a loan, ________ is added on to your total expense. The longer you have your loan, the more of this you will have to pay.

a)

Interest

b)

Inflation

c)

Balance

d)

Loan addend

27.
What is a typical overdraft fee?
a)
$5
b)
$15
c)
$25
d)
$35
28.

What is the benefit of direct deposit?

a)

Any overdraft fees are waived

b)

You don't have to spend time and energy depositing a check

c)

You get a tax benefit from the Federal government

29.

When writing a check, it is a good idea to use

a)

pencil

b)

erasable pen

c)

blue or black ink pen

d)

red pen

30.

Another name for an overdraft fee is non-sufficient funds.

a)

true

b)

false

31.

An individual should sign a check to be cashed when in front of a bank teller (employee).

a)

true

b)

false

32.

It is ok to leave the amount portion of a check blank if you are unsure of the amount of an upcoming purchase.

a)

true

b)

false

33.

Outstaning checks are checks written by the account owner but have yet to be processed by the bank.

a)

True

b)

False

34.

Which part of the check is the least important?

a)

memo line

b)

signature line

c)

routing numbers

d)

check number

35.
The machine outside of banks you use to deposit or withdraw money
a)
ATM
b)
APR
c)
AGT
d)
AMT
36.
A bank card connected to your checking account
a)
Debit Card
b)
Credit Card
c)
Savings Card
37.

If you were going to put your money into a savings account, which bank would you choose?

a)

Bank 1: Interest rate = 2%

b)

Bank 2: Interest rate = 1.99%

c)

Bank 3: Interest rate - 1.9%

d)

Bank 4: Interest rate - 1%

38.

The process in which interest is earned on both the principal and on any previously earned interest.

a)

Compound interest

b)

Simple interest

c)

Interest earned

d)

Interest paid

39.

Banks create money by taking in deposits, making _______, and charging _______.

a)

interest, payments

b)

loans, interest

c)

payments, loans

d)

debt, loans

40.

The kind of bank that provides services for customers and businesses and that is used by most ordinary people

a)

Investment bank

b)

Merchant bank

c)

Commercial bank

d)

Central bank

41.

A small plastic card that you use to buy goods or services (even if you don't have the amount on your account at the moment).

a)

Debit card

b)

Credit card

c)

Cash card

42.

A special plastic card that you can use to pay for things directly from your bank account.

a)

Credit card

b)

Cash card

c)

Debit card

43.

Money or other substance generally accepted as payment for goods and services.

a)

Measure of value

b)

Medium of exchange

c)

Scarcity

d)

Store of Value

44.

1 of 3 functions of money allowing people to preserve value for future use.

a)

Store of value

b)

Divisibility

c)

Portability

d)

Measure of value

45.
What are the three functions of money?
a)
medium of exchange, store of value, unit of account
b)
 medium of exchange, store of value, provides barter
c)
store of value, medium of exchange, creates instability