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Banking Account Review

Total questions: 38

Worksheet time: 19mins

Name
Class
Date
1.

Imagine Aiden frequently uses his smartphone for managing his checking account. What practices should he follow to ensure its security?

a)

Use strong and unique passwords

b)

Avoid using public Wi-Fi networks

c)

Regularly monitor his account activity

d)

All of the above

2.

What is a 529 account?

a)

A retirement savings account

b)

A health savings account

c)

A college savings account

d)

A tax-free savings account

3.

Evelyn is planning her finances and wants to prepare for unexpected expenses. About how much should she save in an emergency fund?

a)

1 month of expenses

b)

3 months of expenses

c)

6 months of expenses

d)

1 year of expenses

4.

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

a)

Low wages

b)

High cost of living

c)

Lack of financial education

d)

All of the above

5.

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

a)

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

b)

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

c)

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

d)

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

6.

Imagine Mason has $1,000 in a savings account. How does inflation impact the value of Mason's savings over time?

a)

It increases the value of Mason's money

b)

It decreases the value of Mason's money

c)

It has no impact on the value of Mason's money

d)

It depends on the interest rate of Mason's savings account

7.

Saving accounts differ from checking accounts in that...

a)

Saving accounts have higher interest rates

b)

Saving accounts have more fees

c)

Saving accounts have unlimited transactions

d)

Saving accounts have overdraft protection

8.

If you receive an email that appears to be from your bank asking for personal information, it's best to directly contact the bank through official channels rather than replying to the email.

a)

TRUE

b)

FALSE

9.

Imagine James has just started his first job and is planning his monthly budget. According to the 50-30-20 Rule, how much of his monthly income should James be saving each month?

a)

50%

b)

30%

c)

20%

10.

James was notified by his bank that he incurred a fee for non-sufficient funds, which is also known as an overdraft fee.

a)

true

b)

false

11.

Which of the following insures checking accounts at a bank or a credit union? (you must choose more than one) HINT: there are two correct answers

a)

NCUA

b)

FDIC

c)

FTIC

d)

NAACP

12.

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

a)

True

b)

False

13.

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

a)

True

b)

False

14.

Imagine Abigail has just opened a savings account and is curious about how much of her deposit is covered by insurance. The FDIC insures accounts up to...

a)

$250

b)

$2,500

c)

$25,000

d)

$250,000

15.

An annual percentage yield represents...

a)

The amount of money your stocks have lost

b)

The amount of money your stocks have gained

c)

The interest that has been earned on compounded deposits

d)

The interest that has been lost on compounded deposits

16.

A certificate of deposit...

a)

Is a certificate that verifies your deposit

b)

Is a certificate that verifies your bank information

c)

Is a deposit that does not earn interest over a term

d)

Is a deposit that earns interest over a term

17.

James took a loan of $10,000 from the bank. DEFINE the interest he needs to pay.

a)

Money paid at a rate for money lent, delaying repayment

b)

Money paid for paying a debt in a timely manner

c)

Money paid for investment success

d)

Money paid for investment failure

18.

DEFINE principle.

a)

A person who runs a school building

b)

The initial money that is deposited

c)

The money earned on an investment

d)

The money spent after a failed investment

19.

Charlotte is considering where to open a new savings account and is comparing local Credit Unions with commercial banks. What aspects of Credit Unions might appeal to her? (Pick all that apply.)

a)

Credit Unions are owned by their members

b)

Credit Unions offer more free services

c)

Credit Unions are not profit focused

d)

Credit Unions belong to the Federal Reserve

20.

Imagine Oliver, Avery, and Lily are discussing where to deposit their club's funds. They want an institution owned by its members. What is it called?

a)

bank

b)

depository

c)

money place

d)

credit union

21.

When a bank accepts your money, what do they do with it?

a)

They stick it in a shoe box and wait for you to come get it back.

b)

They loan most of it out to people who need money for cars and homes, etc.

c)

They put it in a big pile in the middle of the safe and dance around it.

d)

They write your name on every bill and look at it, longing for your return,

22.

Which of the following is not a characteristic of a SAVINGS ACCOUNT?

a)

Safe place to store money

b)

Owners can write checks from the money in the account

c)

Money is protected by Federal Insurance

d)

Money gains interest over time

e)

Great way to save for something you want or an emergency

23.

Arjun has just started his first job and wants a bank account where he can deposit his salary. He also wants the ability to write checks or use a debit card for purchases. Which type of account should Arjun open?

a)

Money Market

b)

Checking

c)

Savings

d)

ATM

24.

Moving money from one account to another is called a ______________.

a)

Swap

b)

Transfer

c)

Glide

d)

Movement

25.

Putting money into an account is known as _______________.

a)

Sinking

b)

Placing

c)

Withdrawing

d)

Depositing

26.

Imagine Avery just received their first debit card. Which of the following statements about using this debit card is NOT true?

a)

When Avery makes a purchase, the money is taken directly from their bank account.

b)

If Avery uses their debit card to withdraw money from an ATM not affiliated with their bank, they might be charged a fee.

c)

There's a daily limit on how much Avery can spend with their debit card.

d)

Avery never has to worry about someone committing fraud with their debit card.

27.

Why is direct deposit a smart financial idea for Emma when she receives her monthly scholarship funds?

a)

You get your money faster

b)

You get your money safely

c)

You can keep track of your money easier

d)

All of the above

28.

Interest is a fee charged...

a)

by a lender to a borrower

b)

by a borrower to a lender

c)

by a bank for writing a check

d)

by a bank for making a deposit

29.

In banking, what does ATM stand for?

a)

Automatic To Money

b)

At The Moment

c)

Asynchronous Transfer Mode

d)

Automated Teller Machine

30.

Imagine Nora checks her mobile banking app to see the current amount of money available for spending. This amount is known as the...

a)

registered amount

b)

balance

c)

deposited amount

d)

statement

31.

When Liam adds money to his savings account, this transaction is called a...

a)

credit

b)

deposit

c)

debit

d)

withdrawl

32.

A direct deposit...

a)

cannot be paid by credit unions

b)

cannont be expressed as a percentage 

c)

is another name for compound interest

d)

goes to your account without using a check

33.

Abigail received a document from her bank that details all her account activities including withdrawals, deposits, and interest earned over the last month. What is this document called?

a)

Bank Statement

b)

Check Register

c)

Certificate of Withdrawals

d)

Certificate of Deposits

34.

The best option if you suspect that someone has stolen your banking information is to ...

a)

Call police

b)

Go home and take a nap

c)

Cancel all cards and notify your bank

d)

Hope your bank catches any suspicious activity

35.

Mia is trying to ensure her online shopping is secure. How can she tell a shopping website is secure?

a)

An s will appear after the http

b)

The website tells you "I am safe"

c)

You always need to scan with an antivirus

d)

Websites are never safe

36.

Which of the following is an example of a peer to peer transaction app

a)

iMonee

b)

AndroidSwap

c)

Venmo

d)

Menvo

37.

When Avery writes a check to Luna for their shared expenses, which part of the check is #3?

a)

Amount written

b)

Amount in numbers

c)

Payee

d)

Routing number

38.

When James writes a check to pay for his textbooks, which part of the check is #2?

a)

Amount written

b)

Amount in numbers

c)

Payee

d)

Routing Number