Free Printable NGPF Banking Unit Review

Worksheets

NGPF Banking Unit Review

Total questions: 67

Worksheet time: 59mins

Name

Class

Date

People who are unbanked are most likely to...

Have a high credit score

Have a low income

Have a college degree

Have a mortgage

Overdraft protection...

Allows you to withdraw more money than you have in your account

Protects your account from unauthorized transactions

Helps you save money for emergencies

Provides insurance for your deposits

Which of the following is TRUE about banks and credit unions?

Banks are for-profit institutions, while credit unions are non-profit

Banks offer higher interest rates on savings accounts than credit unions

Credit unions are insured by the FDIC, while banks are not

Banks are owned by their customers, while credit unions are owned by shareholders

Which of the following is NOT required to open a checking account?

Proof of identity

Proof of address

Social security number

Minimum age requirement

Which of the following is NOT a common way most people are using P2P, such as Venmo?

Splitting bills with friends

Paying rent or utilities

Sending money to family members

Investing in stocks

What feature is the LEAST important for a college student to look for in a checking account?

Low or no monthly fees

Convenient ATM access

High interest rates

Online and mobile banking

Which of the following is FALSE about check registers?

They help you keep track of your account balance

They are used to record deposits and withdrawals

They are no longer necessary with online banking

They can help you detect errors or fraud

What is a typical overdraft fee?

$10

$25

$50

$100

How can you protect your checking account when using online and mobile banking?

Use strong and unique passwords

Avoid using public Wi-Fi networks

Regularly monitor your account activity

All of the above

10.

You have $30 in your acct. How can a bank reorder 4 checks written today to MAXIMIZE your fees?

Process the largest check first

Process the smallest check first

Process the checks in random order

Process the checks in alphabetical order

11.

Why is understanding a bank's fees particularly important for students or young adults?

They are more likely to have a low income

They are more likely to have a high credit score

They are more likely to have a mortgage

They are more likely to have a college degree

12.

Which is NOT a typical goal for a savings account?

Saving for retirement

Saving for a down payment on a house

Saving for a vacation

Saving for a new car

13.

What is a 529 account?

A retirement savings account

A health savings account

A college savings account

A tax-free savings account

14.

About how much should you save in an emergency fund?

1 month of expenses

3 months of expenses

6 months of expenses

1 year of expenses

15.

What are some reasons for why so many Americans live paycheck-to-paycheck?

Low wages

High cost of living

Lack of financial education

All of the above

16.

How does the 50-20-30 rule distribute your income?

50% for needs, 20% for savings, 30% for wants

50% for savings, 20% for needs, 30% for wants

50% for wants, 20% for savings, 30% for needs

50% for needs, 20% for wants, 30% for savings

17.

How is compound interest different than simple interest?

Compound interest is calculated on the initial amount only

Compound interest is calculated more frequently

Simple interest is calculated more frequently

Simple interest is calculated on the initial amount only

18.

How does inflation impact the money in your savings account?

It increases the value of your money

It decreases the value of your money

It has no impact on the value of your money

It depends on the interest rate

19.

Assuming a rate of growth of 8%, in how many years will your $ double?

6 years

8 years

10 years

12 years

20.

Saving accounts differ from checking accounts in that...

Saving accounts have higher interest rates

Saving accounts have more fees

Saving accounts have unlimited transactions

Saving accounts have overdraft protection

21.

What is a mobile banking app?

A mobile banking app is a device used to make phone calls.

A mobile banking app is a type of social media platform.

A mobile banking app is a smartphone application that allows users to perform various banking activities.

A mobile banking app is a tool for tracking fitness and health data.

22.

What are the advantages of using mobile banking apps?

Limited functionality, slow processing, high fees

Convenience, accessibility, real-time updates, enhanced security, and cost savings.

Inconvenient, difficult to use, prone to errors

Lack of security, outdated technology, no customer support

23.

What are the potential risks of using mobile banking apps?

Loss of internet connection, slow processing speed, and limited functionality.

Security vulnerabilities, data breaches, malware attacks, phishing scams, and unauthorized access to personal information.

24.

How can users protect their personal information while using mobile banking apps?

Disable auto-fill for personal information on the mobile device.

Use a strong and unique password for the mobile banking app.

Share personal information with friends and family members.

Follow the steps mentioned in the explanation.

25.

What features are commonly found in mobile banking apps?

Account balance checking, fund transfers, bill payments, transaction history, ATM locator, and mobile check deposit.

Account balance checking, fund transfers, bill payments, transaction history, ATM/branch locator, and mobile check deposit.

Account balance checking, fund transfers, bill payments, transaction history, ATM/branch locator, and mobile payment.

26.

What is the difference between mobile banking apps and online banking?

Mobile banking apps are designed for mobile devices, while online banking is accessed through a web browser on a computer or laptop.

Mobile banking apps require a separate login and password, while online banking uses the same credentials as the bank's website.

Mobile banking apps offer more features and functionality compared to online banking.

Mobile banking apps can only be used with an internet connection, while online banking can be accessed offline.

27.

What is the purpose of a checking account?

The purpose of a checking account is to save money for long-term goals.

The purpose of a checking account is to earn high interest on your savings.

The purpose of a checking account is to invest in the stock market.

The purpose of a checking account is to easily deposit and withdraw money for everyday transactions.

28.

What is the difference between a debit card and a credit card?

A debit card allows you to spend money from your own funds, while a credit card allows you to borrow money up to a limit.

A debit card can only be used for online purchases, while a credit card can only be used for in-person purchases.

A debit card and a credit card are the same thing.

A debit card allows you to spend money from someone else's funds, while a credit card allows you to borrow money up to a limit.

29.

What is the meaning of APR in the context of banking?

Annual Percentage Rate

Annual Percentage Ratio

Annual Percentage Return

Average Percentage Rate

30.

What is the purpose of a savings account?

The purpose of a savings account is to charge high fees and penalties for withdrawals.

The purpose of a savings account is to provide a safe and secure place to store money while also allowing it to grow over time through the accumulation of interest.

The purpose of a savings account is to encourage spending and impulse purchases.

The purpose of a savings account is to provide a high-risk investment opportunity.

31.

What is the role of a bank teller?

A bank teller is responsible for managing the bank's investments.

A bank teller is responsible for cleaning the bank premises.

A bank teller is responsible for marketing the bank's products and services.

A bank teller is responsible for handling customer transactions.

32.

What is the purpose of a certificate of deposit (CD)?

The purpose of a certificate of deposit (CD) is to provide a safe and secure way to save money while earning a higher interest rate than a regular savings account.

The purpose of a certificate of deposit (CD) is to provide a way to borrow money at a low interest rate.

The purpose of a certificate of deposit (CD) is to provide a high-risk investment opportunity with potential for high returns.

The purpose of a certificate of deposit (CD) is to provide a convenient way to access cash quickly.

33.

What are the common fees associated with a checking account?

annual maintenance fees, withdrawal fees, transaction fees

monthly service fees, transfer fees, wire fees

account closure fees, check printing fees, statement fees

monthly maintenance fees, overdraft fees, ATM fees, and minimum balance fees

34.

1. Juan saved $1,000 from his summer job cleaning pools. Which of these account types would work best for him if he doesn't need access to the money for a number of years AND wants to earn the highest interest rate?

Regular savings account

Money Market account

Checking account

Certificate of Deposit

35.

2. Which of the following is an effective strategy for personal saving?

Wait until the end of the month and save whatever is left in your checking account

Save a certain percentage of each paycheck and deposit it directly into a savings account

Cover all of your wants and needs and save whatever is left over

Take out a payday loan so you can save before you receive your paycheck

36.

3. Joelle wants to have an emergency fund to cover 6 months of her expenses. Her monthly gross pay is $4,000 and her monthly expenses are $2,000. If she plans to save 10% of her gross pay each month, how long will it take her to build her emergency fund?

3 months

9 months

24 months

30 months

37.

4. All of the following statements about bank accounts are true EXCEPT…

If the bank is FDIC-insured, your money, up to the FDIC limit, is safe even if the bank fails

Many banks pay interest on the money you deposit into your savings account

Historically, savings accounts earn higher returns than investments in the stock market

Money in a checking account is usually easy to access via ATM, debit card or check

38.

5. All of the following are true about prepaid cards EXCEPT…

Prepaid cards typically include a lot of fees

Prepaid cards are a useful option for someone who is unbanked to make online purchases

Prepaid cards are a great way to build credit

Prepaid cards are usually accepted anywhere that debit and credit cards are accepted

39.

6. You are developing a savings plan and using short-, medium-, and long-term goals to motivate you. Which represents possible goals from short-term to long-term? Save for…

Retirement, a house down payment, college tuition

A new cell phone, college tuition, a house down payment

A new cell phone, dinner with friends this weekend, a new bike

Retirement, college tuition, a vacation

40.

7. Fill in the blanks with the correct responses. If you follow the 50-30-20 rule of budgeting, you'll be putting 50% of your monthly income toward _______________, 30% of your monthly income toward _____________, and 20% of your monthly income toward ______________.

Needs, wants, savings

Savings, needs, wants

Needs, savings, wants

Wants, needs, savings

41.

8. Which represents the BEST time to start saving for your retirement?

As soon as you have your first full-time job

Right after you pay off your student loans

Once you are debt-free, including paying off all credit cards, auto loans, and your mortgage

At age 45, so you have exactly 20 years until retirement

42.

9. Which of the following statements is TRUE?

The majority of Americans have an adequate emergency fund

The majority of Americans have sufficient amounts of money saved for retirement

The majority of Americans have an adequate emergency fund, but do NOT have sufficient amounts of money saved for retirement

The majority of Americans do NOT have an adequate emergency fund or sufficient amounts of money saved for retirement

43.

10. Experts recommend that you accumulate enough to cover 3 to 6 __________________ of expenses in your emergency fund.

Days

Weeks

Months

Years

44.

11. Which of these is a reason someone might choose to open an online savings account rather than a savings account at a traditional bank?

Online savings accounts are FDIC insured to a higher limit

Online savings accounts typically pay higher interest rates on deposits

Online savings accounts are less likely to make you the victim of identity theft

Online savings accounts are created specifically for people under age 25

45.

12. Three of these statements best describe a checking account. Which statement best describes a savings account?

This account offers a convenient way to pay bills and access cash from an ATM

This account pays you interest on money you have put away for later to help your money grow

This account is automatically debited when you use a debit card

This account typically allows an unlimited number of transactions per month

46.

13. You overhear your Aunt Tina tell your mom that she, her husband, and their kids are "living paycheck to paycheck." What does Aunt Tina mean by that?

Aunt Tina gets a paycheck one month, and her husband gets a paycheck the next month; they alternate pay periods

Aunt Tina and her family don't have any money saved, and their paychecks are just barely covering monthly expenses

Aunt Tina and her family have high paying jobs and don’t worry much about money

Aunt Tina only receives paper paychecks instead of direct deposit

47.

14. You are at the checkout counter at the local supermarket and use your debit card to pay for your groceries. Where does the money for this purchase come from?

Your credit card company covers the cost

It is deducted directly from your checking account

Your credit card company provides you with a cash advance to cover the cost

It is deducted directly from your savings account

48.

15. Fill in the blanks: If inflation is _____________ your savings account interest rate then you will be ______________ purchasing power.

Higher than, gaining

Higher than, losing

Equal to, gaining

Lower than, losing

49.

16. Jocelyn gets a text alert from the bank that her account balance has dropped below $100 after a series of $20 ATM withdrawals. She has not used her ATM in over a week and wonders what she should do. What would you recommend?

Wait until her monthly statement arrives so she can check to see if those withdrawals are still there

Wait a week as it is fairly common for the bank to catch mistakes like this

Check her wallet to be sure her debit card has not been stolen. If she still has it, then she should not worry.

Contact her bank immediately as it appears that her account may have been hacked

50.

17. Which of the following transactions will REDUCE your checking account balance immediately?

Writing your monthly rent check which you will mail tomorrow

Using your debit card to pay for groceries at the supermarket

Using your credit card to pay for your school books

Depositing a check at a local bank branch

51.

18. Which of the following statements is an advantage of online banking?

Once you set up online banking, your bank will waive overdraft, ATM, and monthly fees

Using online banking allows you to earn a higher interest rate

Using online banking, you can request transfers, pay bills and automate your savings without visiting the bank branch

You can only shop online if your bank account has online banking features

52.

19. FDIC Insurance is...

Optional coverage consumers can purchase so that their bank deposits remain safe

Insurance bank branches can buy to protect their business against fraud and scams

Required if you want to do online or mobile banking

Protection for bank customers’ deposits up to $250,000, guaranteeing their money is still available if the bank goes out of business

53.

20. When signing up for a new checking account, you answer "Yes" to receive overdraft protection. On this day, you have $10 in your account and go out and use your debit card to buy lunch for $12, a movie ticket for $12 and dinner for $15. What is likely to be the outcome resulting from these transactions?

Your account will be closed

You will likely be charged an overdraft fee for one or more of the transactions and also will need to repay the bank for the amount overdrawn

Since you requested overdraft protection, the bank will not allow you to overdraw your account so your debit card will be denied

The bank will provide you five days to add funds to your account to cover the overdraft and no fees will be assessed

54.

21. How often do customers typically receive a bank statement for their checking account?

Daily

Weekly

Monthly

Annually

55.

22. When signing up for a new checking account you answer "No" and opt out of overdraft protection. On this day, you have $10 in your account and go out and use your debit card to buy lunch for $12, a movie ticket for $12 and dinner for $15. What is likely to be the outcome resulting from these transactions?

Your account will be closed

You will likely be charged an overdraft fee for one or more of the transactions and also will need to repay the bank for the amount overdrawn

Since you declined overdraft protection, the bank will not allow you to overdraw your account so your debit card will be denied

The bank will provide you five days to add funds to your account to cover the overdraft and no fees will be assessed

56.

23. A person-to-person payment app could be used in each of the following scenarios EXCEPT...

Tina pays her neighbor $200 for breaking his window with a softball

Rafael writes a check to cover the entire month’s rent, and his roommates Valerie and Carlos pay Rafael for their share of the monthly rent

Ahmed's soccer coach pays the team's registration fee for a big tournament, and each player then owes him $35 for their share of the registration fee

Mia pays Cheesy Pizza Co. for a pizza she orders on their website

57.

24. Fill in the blanks: Direct deposit typically refers to your ______ sending your ______ electronically to your bank account.

employer, bills

employer, paycheck

parents, allowance

state government, taxes

58.

25. All of the following are downsides of being unbanked EXCEPT:

Lack of access to credit

Lost time paying bills

Lack of fees associated with banks

Difficulty making cashless purchases

59.

How does the 50-20-30 rule distribute your income?

50% for needs, 20% for savings, 30% for wants

50% for savings, 20% for needs, 30% for wants

50% for wants, 20% for savings, 30% for needs

50% for needs, 20% for wants, 30% for savings

60.

About how much should you save in an emergency fund?

1 month of expenses

3 months of expenses

6 months of expenses

1 year of expenses

61.

Typically, a person must be a member of a credit union to use its financial services.

True

False

62.

All financial institutions and banks charge the same types of fees.

True

False

63.

Peer to Peer payment mostly involve funds being transferred from employers to employees (direct deposits).

True

False

64.

Approximately how often does a financial institution send a bank statement to an account holder?

yearly

weekly

quarterly

monthly

65.

Outstaning checks are checks written by the account owner but have yet to be processed by the bank.

True

False

66.

Another name for an overdraft fee is non-sufficient funds.

true

false

67.

When writing a check, it is a good idea to use

pencil

erasable pen

blue or black ink pen

red pen

Reset

NGPF Banking Unit Review

Total questions: 67

Worksheet time: 59mins

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