Banking Basics
Which of the following statements about investing is FALSE?
A) Investing is a guaranteed way to grow your money
Which saving account will earn you the most money?
A) One that compounds interest daily
Which of the following statements about saving accounts is FALSE?
A) Saving accounts don't usually pay interest on the money you deposit
A savings account that compounds interest daily will earn a higher return than a savings account that pays simple interest daily.
A) True
Which of the following statements about stocks is TRUE?
A) stock is a share ownership in a company
Which of the following statements about check cashing companies is FALSE?
B) They charge low fees
If there is an issue with your bank statement or account balance, who should you contract to resolve the issue?
B) Your bank
A is a share of ownership in a company
B) stock
A stock is
C) A share of ownership in a company
A mutual fund
C) A type of investment that invests in a mix of different types of investments
Which of the following is NOT a common feature of a financial institution?
C) Access to investment advice
Savings accounts typically offer more interest than what type of account?
C) Checking accounts
Which of the following statements is TRUE?
C) If there is a mistake on your bank account, you should contact your financial institution immediately
What should you do before you withdraw money from the ATM?
C) Inspect the ATM to make sure it wasn't tampered with
How can you avoid spending more than what is in your bank account?
C) Keep your own records to compare with your financial institution's records
Which of the following statements about savings accounts is FALSE?
C) Savings accounts don't usually require a minimum balance
Which of the following statements about check cashing companies is TRUE?
C) They charge high fees
Investing is best for
C) long-term financial goals, like paying for retirement
Which of the following is NOT a common feature of a financial institution?
A) Access to investment products
Which of the following financial institutions typically have the highest fees?
A) Check cashing and payday loan companies
Which type of bank account is best for everyday transactions?
A) Checking accounts
Which type of bank account typically offers the least (if any) interest?
A) Checking accounts
What should you do before you use an ATM?
A) Inspect the ATM and its surroundings to make sure it is safe to use
How would you reconcile your bank account to avoid spending more than you have?
B) Compare your own records of your spending with your financial institution's records
Your financial institution can't help you if there is a mistake on your bank account statement?
B) False
Which of the following statements about investing is TRUE?
B) Investing is risker than putting money in a savings accounts
Which of the following is NOT a common feature of a financial institution?
B) Investment trading
Which saving account will earn you the least money?
B) One that earns simple interest monthly
Which of the following statements about savings accounts is FALSE?
B) Savings accounts allow an unlimited amount of withdrawals each month
What should you do before your approach an ATM?
D) Check for any suspicious people lurking nearby
If there is a mistake with one of your bank accounts, who should you contract to resolve the issue?
D) Your financial institution
Why is it important to reconcile your bank statements?
D) all of the above
