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WorksheetsFin Lit Review for Common Assessment
Total questions: 32
Worksheet time: 17mins
Which type of bank typically offers higher interest rates on savings accounts and low to no banking fees?(Pick 2)
Big Banks
Credit Unions
Online Banks
Investment Banks
What is a common fee associated with using an ATM that is not part of your bank's network?
Maintenance fee
Overdraft fee
Out of network ATM fee
Service fee
What should you do to avoid overdraft fees?
Use a credit card
Opt out of overdraft protection
Use only cash
Increase your balance
When using a debit card, what happens when you choose 'credit' or 'debit'?
The money is taken from your credit account
The money is taken from your checking account
The transaction is canceled
The money is taken from your savings account
What is the best way to ensure you are regularly adding money to your savings account?
Manually deposit cash
Set up automatic transfers
Write checks to yourself
Use a credit card
What is the recommended amount to start saving for an emergency fund for high school students?
$100
$500
$1000
$2000
Which type of savings account typically earns interest?
Checking account
Traditional savings account
Credit account
Loan account
What will happen in you opt out of overdraft protection?
You will never be able to change back
You will get a red flag from your bank
Get a maintenance fee
your card will decline but no fees
Which type of bank is known for having no bank branches and offering high interest rates on savings accounts?
Big Banks
Credit Unions
Online Banks
Investment Banks
What is one fee that you can avoid with certain banks by maintaining a certain balance and having both a checking and savings account?
Transaction fee
Maintenance fee
Service fee
Deposit fee
What should you do if you see an error in your bank statement?
Ignore it
Deposit more money
Call the bank immediately
Close the account
What is a benefit of starting to save money early?
Less interest earned
More time for money to grow
Immediate access to funds
No need for a savings account
What is the purpose of setting up low balance alerts on your bank app?
To increase spending
To warn you about your account balance
To decrease fees
To close the account
What is one of the uses for an emergency fund?
Buying a new car
Vacation expenses
Medical expenses
Investing in stocks
What is the main characteristic of a traditional savings account?
High fees
Earns interest
Unlimited withdrawals
No interest
What is the main advantage of using a bank app/mobile banking?
Limited access
Only available during bank hours
Check balance and transfer money anytime
High transaction fees
What is one benefit of having direct deposit?
To spend more money faster
To gain as much interest as possible
To avoid taxes
To have your paycheck available in your account on payday
Why are Emergency Funds important?(pick 2)
Unpredictable
Saves you from debt
Depend on others for money problems
They are not important
Which of the following is true about check registers?
It can help you identify mistakes on your bank statement
It can cause more fees
You know exactly how much money you have left to spend
You can submit them to the bank and verify each transaction
Text/email alerts on your Bank APP can be setup for? (Pick 3)
Low balance
Unusual Activity
Direct Deposits
Credit Card transactions
What math formula would you use to describe the financial activity on a bank statement?
End balance= Previous balance + deposits + withdrawals + fees
End balance= Previous balance + deposits - withdrawals - fees
End balance= Previous balance - deposits - withdrawals + fees
End balance= Previous balance - deposits + withdrawals - fees
What is a typical overdraft fee for a for-profit bank?
No Fee
$5
$35
$8
Low balance alert will help you avoid
overdrafting your account
getting a direct deposit alert
going to see a Karen at a bank
Which statement best describes the difference between a debit and credit card?
Debit cards have low interest rates while credit cards have high interest rates
Debit cards are better to use in stores while credit cards are better for shopping online
Debit cards spend money from your own checking account while credit cards take out a loan from the credit company
There is no difference
True or False: All banks offer the same services and fees so there is no need to compare them before making a decision on who to bank with.
Which of the following would have the most positive impact on your credit score?
Make all payments on time, and focus on paying down any credit cards that are close to their credit limits
Take out a car loan for $10,000 or more
Open up 3 credit cards on the same day and go SHOPPING!
When creating a monthly budget you should use your...?
Gross Pay
Net Pay
The 50/20/30 rule represents how your income should be distributed in your budget with
50%- wants, 20%-needs, 30%-saving
50%-needs/bills, 20%-saving, 30%-wants
50%-savings, 20%-needs, 30%-wants
Your total net worth = your assets(what you own) minus your liabilities(debt)
Parts of the Schumer Box that you should compare before signing up for a credit card are?
Interest(APR), penalty fees/rates, grace period
Credit score, penalty rates/fees, credit limit
Interest(APR), bank locations, hours of operation
Some examples of budgeting strategies are pay yourself first, envelope budgeting, an zero based budget
Select ALL that are true statements about Maintenance Fees
Most of the time they are fees from big, for profit banks
Some banks have ways to avoid them
Maintenance fees are a part of adulting
Credit Unions and Online banks often do not have maintenance fees
