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Bank Account Requirements Quiz

Total questions: 25

Worksheet time: 38mins

Name
Class
Date
1.

Which of the following is not absolutely necessary for opening a bank account?

a)

Piece of mail

b)

An ID

c)

Money

d)

Social security

2.

Which of the following is not a bank you will most likely use?

a)

commercial

b)

private

c)

Merchant bank

d)

Credit union

3.

Which of the following saving accounts might I get if I need to save for a house?

a)

traditional

b)

Money market

c)

High yield savings

d)

Certificate of deposit

4.

Which of the following is not a helpful money management tool?

a)

Budget expense sheet

b)

Credit karma

c)

Financial management application

d)

A piggy bank/mattress

5.

How old can you be to open a savings or checking account?

a)

13 with a guardian

b)

20

c)

5 with a guardian

d)

18 with a guardian

6.

An account that allows customers to deposit money and write checks or use debit cards from the account

a)

Checking Account

b)

Savings Account

c)

Mortgage

d)

Certificate of Deposit (CD)

7.

Mitchell just got his first job and moved out of his parents home. He has never had a bank account before and doesn't know what kind of account to open. What would you recommend to Mitchell?

a)

Open a checking account and a savings account. A checking account will be helpful to pay bills and rent, while the savings account will earn some interest.

b)

Open just a savings account. He wants to earn as much interest as possible and really only needs to access the money 6 times a month for essential bills.

c)

Open just a checking account. Because Mitchell doesn't have much money now, he doesn't really need a savings account.

d)

Mitchell doesn't need a bank account. He can just cash his checks at 7-11 and pay for everything in cash

8.

What is a good strategy to help you save?

a)

1st, spend money on all expenses; put the rest into saving

b)

Tap into your savings on a regular basis to purchase small items, like snacks

c)

Pay yourself first - set aside money for savings each month

d)

Keep your spending and saving money together in 1 account

9.

How often should you review your budget?

a)

Once a year

b)

Every five years

c)

Monthly

d)

Never

10.

What is the primary purpose of creating a budget?

a)

To track your spending habits

b)

To ensure you spend all your money

c)

To plan for future expenses and savings

d)

To avoid paying taxes

11.

What is the 50/30/20 rule in budgeting?

a)

50% needs, 30% wants, 20% savings

b)

50% savings, 30% needs, 20% wants

c)

50% wants, 30% savings, 20% needs

d)

50% needs, 30% savings, 20% wants

12.

Match the following

a)

Income

1.

The money a person gets from a job or for performing a service

b)

Savings

2.

Money that is set aside for later use

c)

Expenses

3.

Items that use up one's income

d)

Budget

4.

A plan for tracking a person's income and expenses.

13.
The cost of credit expressed as a yearly interest rate is known as:
a)
Annual Percentage Rate (APR)
b)
Annual Fee
c)
Penalty APR
d)
Introductory Rate
14.
Examples of penalty fees include:
a)
over-the-limit fee
b)
late payment fee
c)
returned payment fee
d)
all of these
15.
How can you avoid paying interest fees on your credit card?
a)
Only use it for groceries
b)
pay off the full balance, on time, each month
c)
you cannot avoid interest fees
d)
only use Discover
16.
The cost of borrowing money is referred to as 
a)
Interest 
b)
Annual Percentage Rate 
c)
Credit 
d)
Credit Line 
17.

When you buy something using this method you have to pay it back. Sometimes it requires interest. What is this?

a)

Borrowing

b)

Income

c)

Investing

d)

Credit

18.

How do you avoid paying interest on your credit card (or any other loan for that matter)?

a)

Always make the minimum payment over time

b)

Pay interest 1st, then pay what you can on leftover balance

c)

Always make the full payment on time

d)

Pay the principal 1st, then pay what you can on interest

19.

How do banks make money off of the credit they issue?

a)

They charge a large, one-time fee at the start of the loan

b)

They take out a small fee each month from your checking account

c)

They charge a high interest rate on the loan

d)

This is a trick question - they DON'T make money!

20.

Where do banks get the money to lend out to consumers?

a)

From their clients' credit card accounts

b)

From their clients' savings accounts

c)

From the Federal government

d)

From their own money vaults

21.

Jim is 23 and has 1 credit card. What would be the best way to improve his credit score?

a)

Get 4 more credit cards in the next 3 months

b)

Diversify his credit - get an loan for the car he needs

c)

Make sure he makes his payments in full & on time

d)

Increase his credit utilization rate

22.

What information can you find on a credit report?

a)

Your medical insurance information

b)

Your parents' and siblings' contact information

c)

Your education level

d)

Inquiries you've made on new lines of credit

23.

Where can you get a free copy of your credit report?

a)

annualcreditreport.com

b)

freecreditreport.com

c)

getmycreditreport.com

d)

creditreport.gov

24.

How are a credit score and credit report related?

a)

A credit report is determined by the factors in your score

b)

A credit score is determined by the factors in your report

c)

Credit reports are less important than your credit score

d)

They're not related at all

25.

Which of the following does NOT contribute to your credit score?

a)

Your payment history

b)

Which banks issued your credit cards

c)

Your debt-to-credit ratio

d)

Length of credit history