WorksheetsBanking and Finance Quiz
Total questions: 20
Worksheet time: 11mins
What is overdraft protection? Why would you want to have it attached to your account?
A service that allows you to withdraw more money than you have in your account.
A feature that prevents any transactions if your account balance is low.
A type of insurance for your bank account.
A savings account linked to your checking account.
What is one advantage and disadvantage of having a Certificate of Deposit or a CD?
Advantage: Higher interest rates; Disadvantage: Limited liquidity
Advantage: Easy access to funds; Disadvantage: Lower interest rates
Advantage: No risk of loss; Disadvantage: High fees
Advantage: Tax benefits; Disadvantage: Penalty for early withdrawal
Which of the following are examples of banking fees?
All of the above
ATM fee
Monthly maintenance fee
Overdraft fee
What is a blank endorsement vs a restrictive endorsement?
A blank endorsement allows any holder to claim the funds, while a restrictive endorsement limits the use of the funds to a specific purpose.
A blank endorsement requires a signature and a specific payee, while a restrictive endorsement requires only a signature.
A blank endorsement is used for checks, while a restrictive endorsement is used for promissory notes.
A blank endorsement is more secure than a restrictive endorsement.
What is identity theft and how can you prevent it?
Identity theft is the act of stealing someone's personal information to commit fraud. It can be prevented by regularly monitoring financial statements and using strong, unique passwords.
Identity theft is a type of computer virus. It can be prevented by installing antivirus software.
Identity theft is a legal process to change one's identity. It can be prevented by not applying for it.
Identity theft is a form of art. It can be prevented by not visiting art galleries.
What is liquidity? Which is the most liquid form of money? Which is the least?
Liquidity is the ease of converting assets to cash. The most liquid form of money is cash, and the least liquid is real estate.
Liquidity is the ability to invest in stocks. The most liquid form of money is stocks, and the least liquid is bonds.
Liquidity refers to the stability of a currency. The most liquid form of money is gold, and the least liquid is cash.
Liquidity is the process of saving money. The most liquid form of money is savings accounts, and the least liquid is cash.
What is the difference between a credit union and a commercial bank?
Credit unions are non-profit organizations, while commercial banks are for-profit.
Credit unions offer higher interest rates on savings than commercial banks.
Commercial banks have more branches than credit unions.
Credit unions are owned by their members, while commercial banks are owned by shareholders.
Who and what is the purpose of the FDIC?
A government agency that insures bank deposits
A private corporation that provides loans
An international organization that regulates trade
A non-profit organization that offers financial advice
What is the routing number on your checking/savings account?
A 9-digit number used for bank transactions
A 16-digit number on your debit card
Your account balance
The interest rate on your savings account
What is the account number on your checking/savings account?
Unique nine-digit code that identifies a bank or credit union
A unique identifier assigned to a specific bank account.
Your social security number.
None of these.
What is the bank secrecy act?
A law requiring financial institutions to assist government agencies in detecting bank fraud.
A regulation for financial institutions to report deposits of $5,000 or more.
A guideline for banks to maintain customer confidentiality.
A policy for financial institutions to report to the Internal Revenue Service a deposit of $10,000 or more.
What is the Federal Reserve System?
The central banking system of the United States. There are 12 federal reserve banks that oversee the banks.
A private banking institution
A financial advisory body
A government department
What is interest?
A hobby or something you like to do
Money that you pay to borrow money or earn for saving money
A new video game
A type of food
What is a savings account?
A box under your bed
A type of bank account that earns interest over time
A place to store your toys
A book where you write down your secrets
A financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans.
Bank
Check cashing centers
Line of credit
Automatic bill payment services
Payment cards issued by banks. They are linked to your bank account, and you can use them for withdrawing money from ATMs.
U.S. Savings bond
Savings bank
Checking account number
ATM card
What agency was created by the federal government to protect bank customers by insuring their deposits?
National Reserve Association (NRA)
Federal Deposit Insurance Corporation (FDIC)
What is a check?
An automated teller machine
A plastic card that requires a pin number and is attached to your bank account
A form of savings
Pre-printed form of payment that is attached to you bank account
What is the definition of compound interest?
Interest calculated on the initial principal and also on the accumulated interest from previous periods.
A sum of money that is borrowed and expected to be paid back with interest.
A numerical representation of a person's creditworthiness based on their credit history.
The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage.
What is the Truth and Lending Act?
Requires banks to disclose information about deposits over $10,000.
Requires lenders to disclose information about all charges and fees associated with a loan. This federal law was created to promote honesty and clarity by requiring lenders to disclose terms and costs of consumer credit.
Requires disclosures about the terms and costs of loans, and gives consumers the right to cancel certain credit transactions
Gives federal banking agencies the authority to bring cease and desist orders against banks that engage in unsafe banking practices
