Banking Basics

Which of the following financial institutions typically have the highest fees?

Check cashing and payday loan companies.

What should you do before you approach an ATM?

Check for any suspicious people lurking nearby.

Which type of bank account is best for everyday transactions?

Checking Account.

Which type of bank account typically offers the least (if any) interest?

Checking Account.

Savings accounts typically offer more interest than what type of accounts?

Checking Accounts.

How could you reconcile your bank account to avoid spending more than you have?

Compare your own records of your spending with your financial institution's records.

Which of the following is NOT a common feature of a financial institution?

Access to investment advice.

Which of the following is NOT a common feature of a financial institution?

Access to investment products.

Which savings account will earn you the least money?

One that earns simple interest monthly.

(True or False) A savings account that compounds interest daily will earn a higher return than a savings account that pays simple interest daily.

TRUE.

Which of the following statements about check cashing companies is TRUE?

They charge high fees.

Which of the following about check cashing companies is FALSE?

They charge low fees.

If there is an issue with your bank statements or account balance, who should you contact to resolve the issue?

Your bank.

If there is a mistake on one of your bank accounts, who should you contact to resolve the issue?

Your financial institution.

A _______ is a share of ownership in a company.

stock

Why is it important to reconcile your bank statements?

To avoid spending more than what's in your account, to detect any errors in your accounts, and to determine if you were charged any fees. (All of the above).

What should you do before you use an ATM?

Inspect the ATM and its surroundings to make sure it is safe to use.

What should you do before you withdraw money from the ATM?

Inspect the ATM to make sure it wasn't tampered with.

Which of the following statements about investing is FALSE?

Investing is a guaranteed way to grow your money.

Which of the following statements about investing is TRUE?

Investing is riskier than putting money in a savings account.

Which of the following is NOT a common feature of a financial institution?

Investment trading.

How can you avoid spending more than what is in your bank account?

Keep your own records to compare with your financial institution's records.

Which savings account will earn you the most money?

One that compounds daily.

Which of the following statements about savings accounts is FALSE?

Savings accounts allow an unlimited amount of withdrawals each month.

Which of the following statements about savings accounts is FALSE?

Savings accounts don't usually pay interest on the money you deposit.

Which of the following statements about savings accounts is FALSE?

Savings accounts don't usually require a minimum balance.

A stock is______.

A share of ownership in a company.

Which of the following statements about stocks is TRUE?

A stock is a share of ownership in a company.

A mutual fund is ___________.

A type of investment that invests in a mix of different types of investments.

(True or False) Your financial institution can't help you if there is a mistake on your bank account statement.

False.

Which of the following statements is TRUE?

If there is a mistake on your bank account, you should contact your financial institution immediately.

Investing is best for________.

long-term financial goals, like paying for retirement.