WorksheetsBanking Unit Test Review
Total questions: 50
Worksheet time: 30mins
What does FDIC stand for and which type of depository institutions does it protect?
Federal Deposit Insurance Corporation; protects banks
Financial Deposit Insurance Company; protects credit unions
Federal Deposit Investment Council; protects investment firms
Federal Deposit Insurance Corporation; protects insurance companies
Which depository institution operates for-profit?
Commercial banks
Credit unions
Savings and loan associations
Mutual savings banks
What is the maximum amount you can insure under the FDIC or NCUA?
$250,000
$100,000
$500,000
$1,000,000
What type of account is used to pay bills and manage everyday expenses?
Checking account
Savings account
Certificate of deposit
Money market account
What is the definition of interest?
The cost of borrowing money or the earnings from lending money
The amount of money in your account
The fee charged for opening an account
The total value of your assets
What is the definition of compound interest?
Interest calculated only on the initial principal
Interest earned on both the principal and previously earned interest
Interest paid by the bank for opening an account
Interest charged for withdrawing money
What type of bank card is linked to your checking account?
Debit card
Credit card
Gift card
Prepaid card
Are traditional and online savings accounts the same or different?
Different
The same
Only online accounts exist
Only traditional accounts exist
What is a Certificate of Deposit (CD)?
A certificate of deposit (CD) is a type of savings account with a fixed interest rate for a set period, or "term".
A checking account with unlimited withdrawals
A debit card linked to your account
A type of bank fee
What is the difference between a prepaid card and a debit or credit card?
Prepaid cards are loaded with money in advance, while debit and credit cards are linked to bank accounts or credit lines.
Prepaid cards earn interest, while debit and credit cards do not.
Debit cards require a PIN, while prepaid and credit cards do not.
Credit cards can only be used online, while prepaid and debit cards can be used in stores.
Why is it recommended that you avoid doing online banking on public Wi-Fi?
Public Wi-Fi is less secure and can expose your personal information to hackers.
Public Wi-Fi is always slow.
Online banking websites do not work on public Wi-Fi.
Banks charge extra fees for using public Wi-Fi.
What is an overdraft fee?
A fee charged when you spend more money than you have in your account.
A fee for using an ATM outside your bank’s network.
A fee for making too many transactions in a month.
A fee for closing your account early.
Are online checking and savings accounts protected by the FDIC and NCUA?
Yes, they are protected.
No, they are not protected.
Only savings accounts are protected.
Only checking accounts are protected.
What might be the benefit of setting up a recurring payment through online bill pay?
It helps ensure bills are paid on time automatically.
It increases the amount of fees you pay.
It makes your account harder to access.
It prevents you from making any payments.
What is the primary advantage of using a physical card instead of a digital wallet?
Physical cards do not require battery power.
Physical cards can be used for online shopping only.
Physical cards are always more secure than digital wallets.
Physical cards are free to use.
What are the advantages of using a digital wallet over a physical credit card?
Digital wallets can offer faster transactions and added security features.
Digital wallets are always accepted everywhere.
Digital wallets do not require internet access.
Digital wallets are only for business use.
What is a P2P payment?
A payment made directly between two people using an app.
A payment made by a business to a customer.
A payment made using cash only.
A payment made through a bank loan.
What are two pros and two cons of using P2P payments instead of traditional methods like cash or checks?
Pros: Convenience and speed; Cons: Risk of fraud and limited dispute resolution.
Pros: High interest rates and rewards; Cons: No internet required and always secure.
Pros: Requires physical presence and is slow; Cons: Always free and no risk.
Pros: Only for businesses and always anonymous; Cons: No record and no security.
What precautions could you take to avoid fraud when using peer-to-peer payment apps?
Only send money to people you know and verify payment details before sending.
Share your password with friends for convenience.
Use public Wi-Fi for all transactions.
Ignore app security updates.
What is NOT one of the 6 different ways you can withdraw or take money out of your checking account?
At a bank with a teller or with an ATM using a debit card.
Make a purchase using a debit card or Write a check.
Using your banks online bill pay or Transfering money to another account.
Getting your paycheck deposited electronically.
an organization that provides services related to money
commercial bank
charter
financial institution
Examples of these types of banks are Wells Fargo, Chase, and Regions
commercial banks
credit unions
charters
an independent agency created by the federal government to protect bank customers by insuring their deposits
Federal Deposit Insurance Corporation
Financial Depository Insurance Company
Financial Department of Insurance Corporation
a non profit financial cooperative owned by and operated for the benefit of its members; services offered only to its members
credit union
commercial bank
savings and loans associations
service offered by most banks and credit unions that requires a Personal Identification Number (PIN) to check account balances, make cash withdrawals and deposits, and move money from one account to another.
electronic funds tranfer
electronic financial transitioning
automated teller machine
also called a check card, allows you to make purchases by swiping your card through a point of sale(POS) terminal that is usually located at the merchant’s checkout counter
debit card
credit card
ATM card
a check written for an amount greater than the balance of the account
overdraft
overspend
fraud
Examples of this is CashApp and Paypal
peer-to payment
debit card
travelerś check
The routing number found on your check identifies which of the following?
Your Account
Your Bank
Check Number
Bank Phone Number
When you withdraw money from your checking account, this is called a/n __________________.
Debit
Credit
Bad Idea
Subtraction
When you deposit money into your checking account, this is called a/an ____________________.
Debit
Credit
Good Idea
Addition
A fee charged by banks in order to cover costs associated with managing customer accounts is called _______________________.
Usage Fee
Service Fee
Support Fee
Maintenance Fee
If you have overdraft protection, you will never be charged a fee if you overdraw your account.
True
False
When you are enrolled in Overdraft Protection, which of the following will happen when you overdraw your account?
Additional money needed to cover the transaction will be covered by the bank and you will be charged an overdraft fee.
The transaction will be declined.
Additional money needed to cover the transaction will be transferred from a linked bank account.
When you withdraw money from a non-network ATM, typically you will be _____________.
charged a fee by your bank only.
charged a fee by the non-network bank only.
charged a fee by both your bank and the non-network bank.
What are savings accounts best for?
Spending money frequently.
Stashing cash.
Online shopping.
Direct deposit of paychecks.
What should the best savings accounts offer?
High interest rates and monthly fees
Low interest rates and no online bank transfers
Strong interest rates, no monthly fees, and easy online bank transfers
Monthly service charges and limited withdrawals
What can help consumers avoid paying bank fees?
Keeping a minimum balance in the account
Being aware of the fees ahead of time and shopping around for options with fewer fees
Only using ATMs of the bank where the account is held
Closing the account and keeping cash at home
What should be written on line 2?
The date
The amount of the check
Who the check is going to
Your signature
A simple way to determine how long an investment will take to double given a fixed annual rate of interest.
Rule of 72
compound interest
interest rate
savings
Should you have both checking and savings accounts?
No, only one account is necessary
Yes, but only if you have a high income
Yes, because they serve different purposes
No, it's better to have multiple checking accounts
An electronic transfer of a payment directly from the account of the payer to the recipients account
Online banking
ATM
Direct deposit
Text alerts
A method of banking in which transactions are deducted electronically via internet
Direct Deposit
Online Banking
ATM
Test Alerts
What is one advantage of online banking
Banker's hours limited
24/7 access to your account
Not a near Bank branch near you
Good costumer service
What is one thing you can't do with online bill pay
Pay with cash
Pay your cell phone
Pay your mortgage
Pay your bill
1. When sending a payment using a P2P payment account, which information is typically required for the transaction?
Social security number
Home address
Email address or phone number
Passport number
2. What is the primary purpose of a digital wallet?
Digital wallets facilitate sharing money within a group
Digital wallets focus on contactless transactions with businesses
Digital wallets store cash in digital form
Digital wallets provide expense tracking for making budgets
3. What precaution can individuals take to avoid falling victim to scams on P2P payment apps?
Avoid using P2P apps altogether
Share their account details with friends
Ignore all text messages from unknown numbers
Verify the authenticity of communication by contacting the bank directly
What is a mobile wallet?
A physical wallet that is very compact
An app that allows electronic transactions using a smartphone
A type of wallet used exclusively for cryptocurrencies
None of the above
Digital wallets are primarily used for:
Storing physical cash
Storing digital currency only
Making online and in-store purchases
Mining cryptocurrencies
