EVERFI - Banking Basics

What should you do before you approach an ATM? a. share a picture of your debit card with you friends b. check or any suspicious people lurking nearby c. make sure it is hidden so no one will see you withdraw money d. ask someone nearby for help using the ATM

b

Savings accounts typically offer more interest than what type of account? a. retirement account b. money market account c. certificate of deposit d. checking account

d

A savings account that compounds interest daily will earn a higher return than a savings account that pays simple interest daily. a. FALSE b. TRUE

a

How can you avoid spending more than what is in your bank account? a. check your bank statement once a month b. ask your financial institution to notify you when you are close to $0 in your account c. keep your own record to compare with your financial institutions records d. none of the above.

c

Which of the following is NOT a common feature of a financial institution? a. paper checks b. direct deposit c. access to investment products d. access to ATMs

c

Which of the following statements about savings accounts is FALSE? a. savings accounts limit the number of withdrawals that can be made each month b. savings accounts are best used to store money for longer-term goals c. savings accounts don't usually pay interest on the money you deposit d. savings accounts may require you to maintain a minimum balance to avoid paying a fee.

c

Your financial institution can't help you if there is a mistake on your bank account statement. a. FALSE b. TRUE

a

Which of the following financial institutions typically have the highest fees? a. internet banks b. check cashing & payday loan companies c. brick-and -mortar banks d. credit unions

b

A stock is ________. a. a share of ownership in a company b. a type of debt investment that acts like a loan c. a type of savings account that pays interest based on current interest rates in the money market. d. a type of investment in a mix of different types of investments.

a

Investing is best for ________. a. long-term financial goals, like paying for retirement. b. earning a little interest while keeping your money safe c. guaranteed fast growth on your money d. short-term financial goals, like building an emergency fund.

a