Font size
WorksheetsPersonal Finance Checking and Banking
Total questions: 55
Worksheet time: 30mins
What is the primary function of the Federal Reserve System (Fed)?
Issue credit cards
Regulate the U.S. monetary and financial system
Provide loans to individuals
Insure bank deposits
Which type of financial institution is owned by its members and offers banking services?
Commercial Bank
Credit Union
Federal Reserve
FDIC
What does the Federal Deposit Insurance Corporation (FDIC) insure?
Stock investments
Bank deposits
Real estate
Personal loans
Which organization was replaced by the FDIC in insuring savings and loan institutions?
Federal Reserve
Credit Union
Commercial Bank
FSLIC
What is a canceled check?
A check that has been voided
A check that has bounced
A check that has been processed and paid by the bank
A check that has been lost
What is an overdraft?
A loan from the bank
A type of savings account
Spending more money than is available in an account
A bank fee
What is a check float?
The time between writing a check and it being cashed
A type of bank account
A bank fee
A loan from the bank
What is a checkbook register used for?
Tracking deposits and withdrawals
Applying for loans
Insuring deposits
Investing in stocks
What is bank reconciliation?
Matching your checkbook register with the bank statement
Applying for a loan
Opening a new account
Closing an account
What type of account is typically used for saving money with interest?
Checking Account
Saving Account
Credit Account
Loan Account
What is a personal loan?
A loan for business purposes
A loan for personal use
A loan for buying a house
A loan for education
What is a 529 Plan used for?
Retirement savings
Emergency fund
Vacation fund
Education savings
What is a Certificate of Deposit (CD)?
A type of savings account with a fixed interest rate and maturity date
A checking account
A credit card
A loan
What is commercial banking?
Banking services for individuals
Banking services for businesses
Online banking
Mobile banking
What is online banking?
Banking services accessed via the internet
Banking services accessed via phone
Banking services accessed in person
Banking services accessed via mail
What is mobile banking?
Banking services accessed via a mobile device
Banking services accessed via the internet
Banking services accessed in person
Banking services accessed via mail
What is a digital wallet?
A physical wallet
An electronic version of a physical wallet
A type of bank account
A loan
What is an Electronic Funds Transfer (EFT)?
A paper check
A type of loan
A savings account
A transfer of money electronically
What is Near Field Communication (NFC) used for in banking?
Writing checks
Contactless payments
Applying for loans
Opening accounts
What is an interest rate?
The cost of borrowing money
The amount of money in a savings account
The fee for writing a check
The cost of opening an account
What does the time value of money refer to?
The concept that money available now is worth more than the same amount in the future
The interest rate on a loan
The amount of money in a savings account
The fee for writing a check
What is Federal Reserve Board Regulation D?
A regulation that limits the number of withdrawals from savings accounts
A regulation that sets interest rates
A regulation that insures deposits
A regulation that provides loans
What is the Annual Percentage Yield (APY)?
The interest rate on a loan
The fee for writing a check
The cost of opening an account
The annual rate of return on a savings account
What is an emergency fund?
Money set aside for unexpected expenses
Money set aside for a vacation
Money set aside for education
Money set aside for a car
What is the purpose of a checkbook register?
To apply for loans
To insure deposits
To invest in stocks
To track deposits and withdrawals
Financial institutions usually do not charge a fee for checking account services.
True
False
Most financial institutions offer online and telephone banking services.
True
False
Electronic funds transfer (EFT) often involves the use of ATM machines.
True
False
It is important to reconcile your checkbook immediately when you receive the bank statement.
True
False
To open an account, either checking or savings, you first must fill out and sign a signature form.
True
False
When a minimum balance is not maintained in a checking account, the bank will usually waive a service charge.
True
False
A debit card is the same as a credit card.
True
False
What is a check written by a bank on its own funds called?
certified check
money order
stop payment order
cashier’s check
A ________ endorsement results when the payee signs over a check to a third person.
special
general
restrictive
conditional
A check that has cleared your bank account is said to be a(n):
cashier’s check
certified check
canceled check
bounced check
Insurance up to ________ on each account is provided for depositors by the FDIC.
$250,000
$100,000
$500,000
$1,000,000
When payment on a check is prevented by the bank before it can be made to the payee, it is a(n)
overdraft
stop payment order
cashier’s check
service fee
A ________ is a safe place to keep stocks and bonds, deeds, and other important documents.
safe deposit box
shoe box
backpack
drawer
A(n) ________ account charges customers fees based on the number of checks written each month; a minimum balance is usually not required.
special
savings
fixed
current
Why do banks generally not issue debit cards or checkbooks for savings accounts?
Banks want to encourage customers to use checking accounts for everyday expenses.
Banks want to discourage frequent withdrawals from savings accounts, which can disrupt their lending operations.
Banks charge higher fees for debit cards and checkbooks associated with savings accounts.
Banks believe that using debit cards and checkbooks for savings accounts can lead to overspending.
What does the annual percentage yield (APY) represent in a savings account?
The total amount of money deposited in the account
The rate of interest earned on savings when compounding interest is factored in
The monthly deposit amount required by the bank
The initial deposit amount required to open the account
Which of the following is NOT a benefit of opening a savings account?
Earning interest on your money
More liquidity and convenience
Safe way to set aside money for the future
No need to pay taxes on interest earnings
Which of the following types of transactions were limited by Federal Reserve Board Regulation D to six per month for savings accounts?
Which type of savings account is most commonly offered by brick-and-mortar banks and credit unions?
High-Yield Savings Accounts
Money Market Accounts
Standard or Traditional Savings Accounts
Specialized Savings Accounts
What is tokenization, and how does it improve the security of digital wallets?
Tokenization is a process that allows you to track your spending history.
Tokenization is a process that encrypts your card data, making it impossible for anyone else to see it.
Tokenization is a process that allows you to use your phone to make payments without needing a physical card.
Tokenization is a process that allows you to transfer money between different accounts.
Which type of bank account is typically used for daily transactions like paying bills and making purchases?
Savings Account
Checking Account
Certificate of Deposit (CD)
Money Market Account (MMA)
What is the purpose of the routing number associated with a checking account?
It is used to access funds through ATMs.
It identifies the specific bank where the account is held.
It allows you to make online payments.
It is a unique identifier for each individual account.
What information is typically listed on a deposit slip when depositing money into a checking account?
Your name, account number, the date, items deposited, and total amount of the deposit.
Your name, social security number, the date, items deposited, and total amount of the deposit.
Your name, account number, the date, items deposited, and your address.
What is the first step in reconciling your account?
Add credits or deposits not on the statement.
Write the ending balance from the bank statement.
List checks, withdrawals, and debits made but not shown on the statement.
Subtract outstanding checks/debit transactions from the total.
What is the FRS? (Federal Reserve System)
The Federal reserve system is the biggest bank in the world.
An ATM
The federal reserve system is the central bank of the united states.
The Federal Reserve system is the Bank of America.
State banks may not join the Federal Reserve System.
True
False
Which is an example of a non-deposit financial institution?
credit union
mortgage bank
commercial bank
mutual savings bank
