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Chapt 8 - Financial Services

Total questions: 35

Worksheet time: 32mins

Name
Class
Date
1.

A bank can help you _____ your money and keep it _____.

a)

Manage; safe

b)

Find; growing

c)

Deposit; budgeted

d)

Budget; available

2.

Some of the services banks offer include . . .

a)

Mortgages, checking writing, and debit cards

b)

Paying off your student loan debt and saving for your future

c)

Creating a personalized budget for you and managing your schedule

d)

Teaching you how to handle your finances and encouraging you to cut up your credit cards

3.

A savings account is for ___________.

a)

Investing your money

b)

Regular spending

c)

Long-term savings goals

d)

The Entertainment budget line item

4.

An easy way to avoid ending up with errors in your checking account is to simply . . .

a)

Only use cash

b)

Monitor your account at least twice a week

c)

Keep all your receipts

d)

Budget often

5.

The Federal Deposit Insurance Corporation (FDIC) and National Credit Union Administration (NCUA) keep your money in the bank insured up to ______ per account.

a)

$250

b)

$2,500

c)

$25,000

d)

$250,000

6.

Credit Unions differ from retail banks in that they typically require membership based on specific criteria.

a)

True

b)

False

7.

Your emergency fund should go in your checking account, NOT a money market account.

a)

True

b)

False

8.

If you see "pending" on an account charge, that means. . .

a)

You need to make a deposit before it is paid

b)

The payment was declined

c)

It hasn't been fully processed yet

d)

It is suspected of being a fraudulent charge

9.

Distrust, unemployment, and bank fees are a few excuses people give for . . .

a)

Not looking for work when their checking account is getting low

b)

Not making and sticking to a budget

c)

Not having a savings or checking account

d)

Not filing their taxes

10.

If you prefer great customer service and lower fees . . .

a)

A small, local bank is often a great option

b)

A large, national bank is for you

c)

You should use the check cashing service at a larger retailer

d)

You should jump from bank to bank until you find the perfect match

11.

A debit card, ATM access, payroll direct deposit, and checks are basic features of

a)

A money market account

b)

Online banking

c)

A savings account

d)

A checking account

12.

If you see a change you don't recognize, you should report it to your bank immediately.

a)

True

b)

False

13.

People who are struggling with money often turn to alternative financial services like payday loans, but these services actually end up causing them to lose money.

a)

True

b)

False

14.

With online banks, all of your deposits, transfers, and bill payments happen digitally, but . . .

a)

Online banks should never be trusted

b)

These banks do not offer interest on savings accounts

c)

It's often more difficult to get in touch with a real person when you need assistance

d)

They do not provide a debit card

15.

With certificates of deposit (CDs), you have to pay a penalty for ____________.

a)

Withdrawing your money early

b)

Depositing money into the account

c)

Creating a savings account

d)

Using an ATM

16.

Verifying your bank's online account statements for accuracy is called ____________.

a)

Reconciling your account

b)

Adjusting your budget

c)

Debit card fraud

d)

Direct deposit

17.

It's your responsibility to know about all of the _______ before choosing a bank.

a)

Fees and services involved

b)

Employees who work there

c)

Branch locations

d)

Options for loans

18.

You should avoid any bank service that leads to . . .

a)

Debt

b)

Multiple checking accounts

c)

Savings

d)

Gaining interest

19.

Liquidity is . . .

a)

A great way to find a financial service that's right for you

b)

How quickly and easily you can access your money

c)

When you deposit silver or gold and they liquify it for you

d)

How money flows from bank to bank

20.

Balancing your checking account is a lot like working on your budget because . . .

a)

They're not alike at all

b)

They both lose you money in the long run

c)

They both involve money

d)

They both get easier and build money confidence the more you do them

21.

Something that all of the predatory financial services have in common is . . .

a)

People can earn money with all of them

b)

You end up losing money with all of them

c)

They all require you to be a college graduate

d)

They all require you to take out a loan

22.

Banks invest their customers' deposited money and then . . .

a)

Pay their customers 100% of the earned interest

b)

Earn interest, paying the customer a small amount of interest on their accounts

c)

Typically lose some of it in risky investment deals

d)

Earn interest, keeping all of it as their own profit

23.

When deciding on the right bank for you, you should first identify what type of bank you want, the features that matter most to you, and ____________.

a)

If you want to go to an Ivy League or community college

b)

What type of home you want to own someday

c)

How large your savings account is

d)

What kind of accounts you want

24.

As the owner of your account, managing your money is ______ responsibility.

a)

The banks

b)

Your parent's

c)

Your

d)

Not your

25.

What does it mean to be blacklisted by a bank?

a)

They promise you a higher credit score in exchange for a 15% interest rate on your investments.

b)

You passed the financial literacy test and they offer to pay you for banking with them.

c)

The bank doesn't allow you to open an account because you handled money poorly in the past and couldn't pass their financial background check.

d)

They have decided to charge you extra fees and limited the services available to you.

26.

Overdraft protection sounds like a good idea . . .

a)

But you are actually paying a fee to access your own money

b)

But it will ruin your credit score

c)

And it helps you build wealth

d)

Because it is

27.

Make sure your bank has plenty of ______ and ______.

a)

ATM locations; a mobile banking app

b)

Security breaches; foreign transaction fees

c)

Insurance; monthly maintenance fees

d)

Branches; low interest rates

28.

Overdrafting your account is a sign of diligence and responsibility.

a)

True

b)

False

29.

A debit card linked with your checking account is a good option for regular spending.

a)

True

b)

False

30.

You need to track everything that involves money, including . . .

a)

The latest retail store credit card offers

b)

All of the sales that are currently happening

c)

Debit card purchases, third-party app transactions, and ATM withdrawals

d)

Your clothing budget for the month

31.

Explain the benefits of keeping your money in a bank or credit union, as opposed to an envelope under your bed.

4 lines
32.

What is a predatory financial service?

4 lines
33.

How do banks make money?

4 lines
34.

What are the main differences between checking and savings accounts?

4 lines
35.

Why are tracking your expenses and balancing your checking account important?

4 lines