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Ch. 8 Quiz (Financial Services)

Total questions: 15

Worksheet time: 14mins

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)

Paying off your student loan debt and saving for your future

b)

Creating a personalized budget for you and managing your schedule

c)

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

d)

Mortgages, check writing, and debit 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.

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

a)

Money Market account

b)

Online Bank

c)

Checking Account

d)

Savings Account

10.

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

11.

Liquidity is . . .

a)

How quickly and easily you can access your money

b)

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

c)

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

d)

How money flows from bank to bank

12.

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

a)

Earn interest, keeping all of it as their own profit

b)

Typically lose some of it in risky investment deals

c)

Pay their customers 100% of the earned interest

d)

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

13.

What does it mean to be blacklisted by a bank?

a)

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

b)

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.

c)

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

d)

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

14.

Overdraft protection sounds like a good idea . . .

a)

Because it is

b)

But you have to pay back the deposited money with interest

c)

And it helps you build wealth

d)

But it will ruin your credit score

15.

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

a)

TRUE

b)

FALSE