WorksheetsUnderstanding Banking Basics Quiz
Total questions: 20
Worksheet time: 2hrs 40mins
Money held in a bank is insured by which of the following agencies, depending on the type of institution?
Federal Trade Commission
National Credit Union Association (NCUA)
Both the FDIC and NCUA, depending on what type of institution your money is in
Federal Deposit Insurance Corporation (FDIC)
What do the 9 digits in the lower left-hand corner of your checks represent?
Your account number
The check number
The bank code
The routing number for your bank or credit union
Which of the following is NOT a fee typically charged by a bank?
Late fee
ATM fee
Minimum Balance fee
Overdraft fee
Which government agency oversees the banking system in the United States?
The Federal Reserve System
The United States Treasury
The House of Representatives
Congress
What does APY stand for?
Average Percentage Yield
Annual Percentage Yield
Average Payment Yearly
Annual Payment Yearly
If you have a savings account at a credit union, which agency insures your money?
Federal Deposit Insurance Corporation (FDIC)
National Credit Union Association (NCUA)
Federal Reserve System
United States Treasury
A check has three sets of numbers at the bottom. Which set is used by banks to identify where the check should be processed?
Account number
Routing number
Check number
Bank code
If you withdraw money from an ATM that is not part of your bank’s network, what type of fee might you incur?
Overdraft fee
ATM fee
Minimum balance fee
Late fee
Why is it important to know the APY when choosing a savings account?
It tells you the minimum balance required
It shows the total interest you will earn in a year, including compounding
It lists all the fees charged by the bank
It identifies the bank’s routing number
If you write a check for more money than you have in your account, which fee are you most likely to be charged?
ATM fee
Overdraft fee
Minimum balance fee
Late fee
Suppose you are opening a new checking account. What information from your check would you need to set up direct deposit with your employer?
The check number and your name
The routing number and your account number
The bank code and the check number
The APY and the routing number
A friend wants to avoid paying a minimum balance fee. What should they do?
Always use in-network ATMs
Keep their account balance above the required minimum
Write fewer checks
Ask for a higher APY
If a bank is not insured by the FDIC or NCUA, what risk does a customer face?
Higher APY
Loss of funds if the bank fails
More ATM fees
Lower minimum balance requirements
A student is comparing two savings accounts: one with a higher APY and one with a lower APY. What should the student consider when making a decision?
The account with the higher APY will earn more interest over time, assuming all other factors are equal
The account with the lower APY will always have fewer fees
The account with the higher APY will have a lower minimum balance
The account with the lower APY is always safer
If you notice an unexpected fee on your bank statement, what is the best first step to resolve the issue?
Ignore it
Contact your bank for clarification
Close your account immediately
Withdraw all your money
A person is deciding between opening an account at a bank or a credit union. What strategic factor should they consider regarding deposit insurance?
Only banks offer deposit insurance
Both banks and credit unions offer deposit insurance, but through different agencies (FDIC for banks, NCUA for credit unions)
Credit unions do not offer any insurance
Only credit unions offer deposit insurance
You are planning to write several checks and make ATM withdrawals this month. How can you avoid unnecessary fees?
Use only out-of-network ATMs
Monitor your account balance and use in-network ATMs
Ignore your account balance
Write checks for more than your balance
A bank offers a high APY but charges a high minimum balance fee. How should you decide if this account is right for you?
Choose the account without considering the fees
Calculate if the interest earned from the high APY will offset the minimum balance fee based on your expected balance
Only look at the APY
Only look at the minimum balance fee
If a new law changes the agency responsible for insuring bank deposits, what impact might this have on consumers?
No impact at all
Consumers may need to verify that their deposits are still insured and understand the new agency’s coverage limits
All banks will close
Consumers will automatically lose all their money
A student wants to maximize their savings account earnings while minimizing fees. What strategy should they use?
Choose an account with the highest APY regardless of fees
Compare both APY and fee structures, and select an account that offers a good balance between high APY and low fees
Only consider accounts with no fees
Only consider accounts with the lowest APY
