WorksheetsUnit 3 (Banking) Review
Total questions: 22
Worksheet time: 12mins
Which of the following is NOT a method of depositing money into a checking account?
Through an ATM
Direct deposit from your employer
Sending your money to the branch through the mail
Mobile app deposit
Which of the following best describes what FDIC Insurance is?
A government-backed policy that protects your money if a bank fails
A bank program that protects you from high overdraft fees
Additional accounts offered by banks to save for car and home insurance
A budgeting program offered by banks to help you save for the future
You receive a check for $50 from your Aunt Louise for your birthday. You go to an ATM to deposit the check into your checking account. How should you endorse the check?
Just sign your name on the front of the check
Sign your Aunt Louise's name on the back of the check
Sign your name and write "For Deposit Only" and your checking account number on the back of the check
Since the check is made out to you, you don't need to worry about signing the check
How much money should you keep in your checking account?
Two months of pay
Six months of pay
At least your minimum balance
One full paycheck
What is the purpose of a bank statement?
It provides a list of all transactions on your account from the previous period, including withdrawals, deposits, and fees
It explains all fees that have been incurred during the previous month
It alerts you about possible fraudulent charges on your account
It is a reminder of the fees that may occur when you use your checking account
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
Earn interest on your deposits
Daisy reads her bank statement and finds an error. She should…
Do nothing. The bank will correct the error at the end of the month.
Call the FDIC. She is insured up to $250,000.
Call the bank. The bank will investigate the transaction to see if it was an error.
Assume that it’s a transaction that she made and forgot about.
Each of these is a way to get money INTO your checking account EXCEPT…
Deposit a check through an ATM
Do an electronic transfer from another account
Send cash in the mail to the bank
Do a mobile check deposit
FDIC insurance provides…
Health insurance coverage after you turn 26
Banks with insurance so that customers can’t scam them
A guarantee your bank won’t ever go out of business
A guarantee that the money in your checking account, up to $250,000, is safe and available to you
Which term from your bank statement represents the amount of money you have in your account at a given point?
Reference number
Deposit
Withdrawal
Balance
What is an overdraft fee?
Fee for using out-of-network ATM
Fee for withdrawing more money than you have in your account
Fee for writing a check
Fee for going below your minimum balance requirement
When you open a checking account for the first time, you need to have each of these items EXCEPT…
Proof of employment, such as your last paycheck
The required minimum deposit
A legal form of identification, such as a Social Security card, driver’s license, or birth certificate
A completed application
Which of these best describes why you should make sure your bank is FDIC insured?
It guarantees you will get all of your money back, regardless of balance, if your bank goes out of business
It guarantees you will earn interest on your checking account balance up to $250,000
It prohibits your bank from charging fees unless you have over $250,000 in the bank
It guarantees you will get all of your money back, up to $250,000, if your bank goes out of business
Which of the following would likely be LEAST important to a college freshman looking for a checking account?
The interest rate they'll earn on money in the account
How accessible a bank branch or ATM is to their college campus
Whether the bank has a minimum balance and/or waives annual fees for students
Whether having the account will be convenient both on campus and when the student is home for holidays and summer break
Which of the following is typically a feature of a savings account but not a checking account?
Ability to withdraw money from an ATM
FDIC insured up to $250,000
Your money earns interest
Ease of making payments using a debit card
If you have money saved now that you intend to spend in 5 or more years, which type of savings account would have the highest interest rate?
Traditional savings
Money market account
Certificate of deposit (CD)
Online savings account
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.
Which of the following is TRUE when comparing savings accounts and certificates of deposit (CDs)?
Savings accounts are FDIC insured while certificates of deposit are not
Savings accounts allow you to access your money at all times while certificates of deposit require your money to be left alone for a set period of time
Savings accounts typically have a higher interest rate than certificates of deposit
Both savings accounts and certificates of deposit allow you to deposit money at any time
Your cousin is eager to start putting her money aside in a savings account since she just started her first job. What should she ask the bank teller (or research) before she opens the account?
Is it FDIC insured?
What is the interest rate?
Is there a minimum balance I need to have in the account?
What kinds of fees are there?
All of the above
What is one reason you might use a checking account instead of a savings account?
Most checking accounts allow you to earn interest on your deposit
On checking accounts, the number of transactions allowed monthly is limited
Checking accounts are great for making online purchases and paying bills
Checking accounts are great for setting and keeping short- or medium-term financial goals
When banks provide information about savings accounts, they typically quote the interest rates they offer (e.g. 2% or 3%) on a…
Per day basis
Per month basis
Per six months basis
Annual basis
Which of the following would you expect to pay the HIGHEST interest?
3-year CD
1-year CD
Online savings account
Savings account at traditional bank
