WorksheetsDay Two: Financial Literacy Quiz
Total questions: 20
Worksheet time: 10mins
What happens if you withdraw money from a Certificate of Deposit (CD) before the term ends?
You lose all your money.
You are charged a penalty for early withdrawal.
You can withdraw without any consequences.
You earn additional interest.
What is a benefit of moving money from a checking account to a Certificate of Deposit (CD)?
Increased liquidity.
Higher earnings through interest.
No taxes on interest earned.
Immediate access to funds.
Which of the following is considered taxable income if it exceeds $10?
Deposits made into a checking account.
Interest earned from savings products.
Money withdrawn from an ATM.
Direct deposits from an employer.
What is a direct deposit?
A deposit made at an ATM.
A payroll check electronically transferred into your account.
A deposit made by calling the bank.
A deposit made through a mobile app.
Which of the following is NOT a benefit of direct deposit?
You earn higher interest on your paycheck.
The money is available on payday.
You don’t have to go to the bank to deposit your check.
You don’t have to worry about losing your check.
What is a money market account?
A form of electronic funds transfer.
A type of loan offered by banks.
An interest-bearing account with some checking features.
An account that only allows deposits.
What should you do to avoid ATM fees?
Use an ATM by your own bank.
Withdraw cash only during business hours.
Avoid using ATMs altogether.
Use ATMs in other countries.
What is the purpose of a PIN for an ATM card?
To increase the interest rate on your account.
To authorize transactions securely.
To identify the bank account number.
To link multiple accounts to one card.
What should you do if you lose your debit card?
Continue using your account as usual.
Immediately report the loss to the bank and cancel the card.
Wait for the bank to contact you.
Write down your PIN for future reference.
What is the maximum liability for fraudulent charges if you report a lost debit card within two business days?
$50
The full amount of the unauthorized charges.
$0
$500
What is a cashier’s check?
A check drawn against the bank’s funds.
A personal check signed by the account holder.
A check that can bounce if funds are insufficient.
A check issued by a pawn shop.
Why is a cashier’s check considered a secure form of payment?
It is guaranteed by the bank.
It can be canceled at any time.
It is issued without any fees.
It is linked to a credit card.
What is a disadvantage of using phone cards, debit cards, and electronic transfers?
They require a high credit score.
They are difficult to use.
They expose users to a greater risk of identity theft.
They are not accepted in most places.
What is the best way to prevent identity theft when disposing of personal documents?
Burn the documents.
Shred the documents.
Throw the documents in the trash.
Store the documents in a safe deposit box.
What is the LEAST expensive way to cash a personal check?
At a check-cashing store.
At a bank where you have an account.
At another bank near your home.
At a pawn shop.
What is an example of an electronic funds transfer (EFT)?
Direct deposit of a paycheck.
Depositing a check at an ATM.
Withdrawing cash from an ATM.
Writing a personal check.
What is the main idea of Bob Hope’s quote about banks?
Banks lend money to those who don’t need it.
Banks only serve wealthy individuals.
Banks are not trustworthy.
Banks are unreliable financial institutions.
What is the primary purpose of a safe deposit box?
To withdraw money 24/7.
To store cash for daily use.
To keep valuables and important documents secure.
To deposit checks electronically.
What is the difference between a debit card and a credit card?
A debit card uses your own money, while a credit card is a loan.
A debit card requires a credit check, while a credit card does not.
A debit card has higher interest rates than a credit card.
A debit card is only used for online purchases.
What should you avoid including on your checks to prevent identity theft?
Your account number.
Your name.
Your home address.
Your bank’s name.
