WorksheetsUnit 1 Banking Test
Total questions: 26
Worksheet time: 19mins
What is the purpose of an interest rate in a savings account?
To charge you for keeping your money in the bank
To reward you for saving money by paying you a percentage of your balance
To cover the administrative costs of managing your account
To provide insurance for your savings
What is an overdraft fee?
A fee for depositing too much money
A fee for withdrawing money from savings
A fee charged when you spend more money than you have in your checking account
A fee for transferring money between accounts
Which of the following is typically required to open a savings account?
An Initial Deposit
A driver's license or state ID
Your Social Security number
All of the above
What is one benefit of regularly balancing your checkbook?
It helps you detect unauthorized transactions
It allows you to calculate your annual taxes
It ensures your credit score improves
It provides a way to track your credit card purchases
What is the benefit of having direct deposit for your paycheck?
It reduces the risk of losing a physical paycheck
It ensures your money is deposited quickly and reliably
It often allows you to access your funds earlier
All of the above
What happens if you don't have enough money in your account to cover a check you've written?
The check will bounce, and you may incur a fee
The bank will cover the difference without any fee
The check will be held until you deposit more funds
The recipient will be charged a fee
What is a common feature of savings accounts that is not typically offered with checking accounts?
The ability to write checks
Higher interest rates
Unlimited transactions
Overdraft protection
When opening a savings account, what is the significance of the Annual Percentage Yield (APY)?
It tells you how much you will owe the bank each year
It indicates the amount of interest you will earn on your deposits over a year
It represents the fees associated with the account
It is the interest rate the bank borrows at from the Federal Reserve
ATM Card
This action adds money into an account.
Debit
Orrin had $541.06 in his checking account, and he paid his rent online for $560.00 using his debit card.
IF the transaction goes through, what else will happen?
overdraft fee
Computer terminal that allows the withdrawal of cash and perform other banking transcactions.
FDIC
ATM
ATF
IRS
The FDIC insures bank accounts against bank failure up to the sum of
$100,000
$250,000
$1,000,000
$0
What is compound interest?
Interest calculated on the initial principal and also on the accumulated interest of previous periods.
Interest calculated based on the borrower's credit score
Interest calculated only on the initial principal
Interest that grows the faster you withdrawal money from your account.
What should you do if you suspect someone hacked into your checking account and made a purchase?
What will happen if I use an Out of Network ATM or use more than 6 transactions with my savings account in 1 month?
I will get charged fees
I will be unbanked
My debit card will be locked
I will be required to reset my PIN
A savings product that earns interest on a lump sum for a fixed period of time.
Bounced check
Savings bank
Money market account
Certificate of Deposit (CD)
Banks use savings account deposits to:
pay interest to checking account depositors
pay bonuses to executives
give loans to consumers and businesses
help out different charities in the area
What should the best savings accounts offer?
High interest rates and monthly fees
Low interest rates and no online bank transfers
Strong interest rates, no monthly fees, and easy online bank transfers
Monthly service charges and limited withdrawals
