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Banking Basics Review

Total questions: 12

Worksheet time: 4mins

Name
Class
Date
1.

Which of the following is NOT a common feature of a financial institution?

a)

Access to investment products

b)

Paper Checks

c)

Access to ATMS

d)

Direct Deposit

2.

Which of the following financial institutions typically have the highest fees?

a)

Credit Unions

b)

Brick-and-mortar banks

c)

Check cashing and payday loan companies

d)

Internet banks

3.

Which of the following statements about check cashing companies is FALSE?

a)

They offer bad deals where you'll owe a lot more than you borrowed

b)

They charge low fees

c)

They can take a percentage of your check on top of fees

d)

They make it easy to fall into a loan cycle that is hard to get out of

4.

Which type of bank account typically offers the least (if any) interest?

a)

Savings account

b)

Money Market Account

c)

Certificate of Deposit

d)

Checking Account

5.

Which type of account is best for everyday transactions?

a)

Checking Account

b)

Savings Account

c)

Money Market Account

d)

Certificate of Deposit

6.

Which savings account will likely earn you the MOST money?

a)

One that earns simple interest monthly

b)

One that earns simple interest daily

c)

One that compounds interest monthly

d)

One that compounds interest daily

7.

What should you do before you approach an ATM?

a)

Ask someone nearby for help using the ATM

b)

Take a picture using your debit card so your friends know where you are

c)

Check the ATM and it's surroundings to make sure it is safe to use

d)

Inspect the ATM to make sure it wasn't tampered with

8.

Which of the following statements about savings accounts is FALSE?

a)

Savings account don't usually require a minimum balance

b)

Savings accounts pay interest on the money you deposit

c)

Savings account are best used to store money for longer-term goals

d)

Savings account may limit the number of withdrawals that can be made each month.

9.

Which of the following statements about stocks is TRUE?

a)

A stock is a type of debt investment that acts like a loan

b)

A stock is a type of investment that invests in a mix of different types of investments

c)

A stock is a type of savings account that pays interest based on current interest rates in the money market

d)

A stock is a share of ownership in a company

10.

A mutual fund is...

a)

A type of debt investment that acts like a loan

b)

A type of investment that invests in a mix of different types of investments

c)

A type of savings account that pays interest based on current interest rates in the money market

d)

A share of ownership in a company

11.

If there is a mistake with one of your bank accounts, who should you contact to

resolve the issue?

a)

The Police

b)

911

c)

No one. Too bad for you :/

d)

Your financial institution

12.

What is the name of Mr. Brumm's student teacher?

a)

Ms. Doorian

b)

Ms. Dramamine

c)

Ms. Diadrio

d)

Ms. Doronzio