WorksheetsBanking & Saving
Total questions: 30
Worksheet time: 15mins
Name
Class
Date
1.
Sam 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?
a)
Regular savings account
b)
Money Market account
c)
Checking account
d)
Certificate of Deposit
2.
What is an overdraft fee?
a)
A fee charged by a bank when it allows transactions to go through that would otherwise have overdrawn your account.
b)
A fee charged when you use an ATM that is from a bank other than your own.
c)
A fee charged by banks when an account lacks the funds needed to cover a transaction, and the bank doesn’t allow the transaction to go through.
d)
A fee charged when you transfer too many funds between accounts.
3.
Which of the following is NOT a good place to save for the future?
a)
401K
b)
Checking Account
c)
529
d)
Certificate of Deposit (CD)
4.
Which of the following will has the highest average fee?
a)
NSF (Non Sufficient Funds) Fee
b)
Overdraft Fee
c)
Out-of-Network ATM fee?
d)
A Monthly Maintenance Fee
5.
Pauly is saving up for college. He has $10,000 saved up from mowing lawns and selling Fireball down at the dirt track. He hopes to save about 200 a month moving forward. He is going to college in five years. Which of these account types would work best for him?
a)
Regular savings account
b)
Money Market account
c)
Checking account
d)
Certificate of Deposit
6.
What is simple interest?
a)
Interest calculated on the initial principal only
b)
Interest calculated on the initial principal and any previously earned interest
c)
Interest that varies based on market conditions
d)
Interest calculated using complex mathematical formulas
7.
If you invest $100.00 at a 10% annual interest rate for 3 years, how much simple interest will you earn?
a)
$130
b)
$150
c)
$50
d)
$30
8.
What type of interest will earn you more money on your savings account?
a)
Compound
b)
Simple
9.
What is NOT a service that a bank provides?
a)
Easy access—deposit and withdraw money conveniently
b)
Online management—manage your accounts with your bank’s website or app
c)
Simple transfers—link your account to a payment app and it’s easy to pay back your friend for those concert tickets
d)
Access to loans—apply for a credit card or mortgage with your bank
e)
Purchasing stocks and other investments such as cryptocurrency
10.
Which are TWO ADVANTAGES of having an account at a local community bank versus a national bank?
a)
Community banks are typically larger and more well-known than national banks.
b)
Community banks typically have LOWER fees and charges when compared to a national bank.
c)
Community banks typically have HIGHER fees and charges when compared to a national bank.
d)
Community banks typically give back and support the local community.
11.
What questions should you ask before opening an account at a national bank, community bank, or credit union? (choose all correct answers)
a)
What type of fees are there with this account?
b)
Is there a fee for using an ATM? If so, how much?
c)
Is there a minimum balance requirement with this account?
d)
Do you offer online banking or mobile banking?
e)
Is there popcorn?
12.
What is an account balance when referring to a checking account?
a)
The total amount of money a bank has.
b)
The amount of money in a person's bank account at a specific time.
c)
The interest earned on a savings account.
d)
The maximum amount of money you can withdraw from an ATM in one transaction.
13.
What is a bank statement?
a)
A statement from the government about the economy.
b)
A document that summarizes a person's financial transactions with a bank.
c)
A statement from a bank detailing its future plans and investments.
d)
A notice from the bank about changes in interest rates.
14.
What is a minimum balance?
a)
The highest balance you can have in your account.
b)
The average balance of all accounts at a bank.
c)
The lowest amount of money required to keep an account open or avoid fees.
d)
The balance required to apply for a loan.
15.
What is overdraft protection?
a)
A type of insurance for your bank account.
b)
A service that prevents your account from going negative.
c)
A program to earn bonus points on your credit card.
d)
A way to withdraw money from an ATM without a PIN.
16.
What is the mathematical formula that you would use to describe the financial activity on a bank statement?
a)
Ending Balance = Previous Balance + Deposits + Withdrawals
b)
Ending Balance = Previous Balance - Deposits + Withdrawals
c)
Ending Balance = Previous Balance + Deposits - Withdrawals
d)
Ending Balance = Previous Balance - Deposits - Withdrawals
17.
Which of the following is an effective strategy for personal saving?
a)
Wait until the end of the month and save whatever is left in your checking account
b)
Save a certain percentage of each paycheck and deposit it directly into a savings account
c)
Cover all of your wants and needs and save whatever is left over
d)
Take out a payday loan so you can save before you receive your paycheck
18.
All of the following statements about bank accounts are true EXCEPT…
a)
If the bank is FDIC-insured, your money, up to the FDIC limit, is safe even if the bank fails
b)
Many banks pay interest on the money you deposit into your savings account
c)
Historically, savings accounts earn higher returns than investments in the stock market
d)
Money in a checking account is usually easy to access via ATM, debit card, or check
19.
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 ______________.
a)
Needs, wants, savings
b)
Savings, needs, wants
c)
Needs, savings, wants
d)
Wants, needs, savings
20.
Experts recommend that you accumulate enough to cover 3 to 6 __________________ of expenses in your emergency fund.
a)
Days
b)
Weeks
c)
Months
d)
Years
21.
Three of these statements best describe a checking account. Which statement best describes a savings account?
a)
This account offers a convenient way to pay bills and access cash from an ATM
b)
This account pays you interest on money you have put away for later to help your money grow
c)
This account is automatically debited when you use a debit card
d)
This account typically allows an unlimited number of transactions per month
22.
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?
a)
Aunt Tina gets a paycheck one month, and her husband gets a paycheck the next month; they alternate pay periods
b)
Aunt Tina and her family don't have any money saved, and their paychecks are just barely covering monthly expenses
c)
Aunt Tina and her family have high paying jobs and don’t worry much about money
d)
Aunt Tina only receives paper paychecks instead of direct deposit
23.
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?
a)
Your credit card company covers the cost
b)
It is deducted directly from your checking account
c)
Your credit card company provides you with a cash advance to cover the cost
d)
It is deducted directly from your savings account
24.
Which of the following transactions will REDUCE your checking account balance immediately?
a)
Writing your monthly rent check which you will mail tomorrow
b)
Using your debit card to pay for lunch
c)
Using your credit card to pay for your school books
d)
Depositing a check at a local bank branch
25.
How often do customers typically receive a bank statement for their checking account?
a)
Daily
b)
Weekly
c)
Monthly
d)
Annually
26.
Which of the following statements is TRUE?
a)
The majority of Americans have an adequate emergency fund
b)
The majority of Americans have sufficient amounts of money saved for retirement
c)
The majority of Americans have an adequate emergency fund, but do NOT have sufficient amounts of money saved for retirement
d)
The majority of Americans do NOT have an adequate emergency fund or sufficient amounts of money saved for retirement
27.
FDIC Insurance is...
a)
Optional coverage consumers can purchase so that their bank deposits remain safe
b)
Insurance bank branches can buy to protect their business against fraud and scams
c)
Required if you want to do online or mobile banking
d)
Protection for bank customers’ deposits up to $250,000, guaranteeing their money is still available if the bank goes out of business
28.
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?
a)
Your account will be closed
b)
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
c)
Since you requested overdraft protection, the bank will not allow you to overdraw your account so your debit card will be denied
d)
The bank will provide you five days to add funds to your account to cover the overdraft and no fees will be assessed
29.
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?
a)
Your account will be closed
b)
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
c)
Since you declined overdraft protection, the bank will not allow you to overdraw your account so your debit card will be denied
d)
The bank will provide you five days to add funds to your account to cover the overdraft and no fees will be assessed
30.
A person-to-person payment app could be used in each of the following scenarios EXCEPT...
a)
Tina pays her neighbor $200 for breaking his window with a softball
b)
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
c)
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
d)
Mia pays Cheesy Pizza Co. for a pizza she orders on their website
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