Banking Basics and Budgeting Benchmark Review

2. Which type of bank account typically offers the least (if any) interest? A. Checking account B. Savings account C. Money market account D. Certificate of deposit

A. Checking account

20. Which of the following expenses would be a good reason to spend money from an emergency fund? A. Repair your laptop that you use for homework. B. Upgrade your phone to the latest model. C. Buy new track shoes because they're in style. D. Purchase concert tickets to see your favorite artist.

A. Repair your laptop that you use for homework.

18. When setting a budget, you should consider... A. financial goals, current expenses, and income. B. mostly income. C. creative ways to spend your money. D. mostly your goals.

A. financial goals, current expenses, and income.

15. In addition to needs, what should you plan for first when creating a budget? A. Possible charitable donations B. Shopping money C. Investments D. Recurring expenses

D. Recurring expenses

7. If there is a mistake with one of your bank accounts, who should you contact to resolve the issue? A. The CFPB B. No one, you can't resolve the issue C. The local police station D. Your financial institution

D. Your financial institution

21. An emergency fund should NOT be used for... A. fixing a blown tire on your car that you use to get to work. B. repairing your laptop that you use for homework. C. a last-minute school trip. D. getting an extra job so you can have money to cover that expense.

D. getting an extra job so you can have money to cover that expense.

3. which type of bank account is best for everyday transactions? A. Checking account B. Savings account C. Money market account D. Certificate of deposit

A. Checking account

8. Which of the following statements about investing is TRUE? A. On average, putting money in a savings account earns a higher return than investing money in the stock market. B. Investing is riskier than putting money in a savings accounts C. Investing is best for short-term financial goals. D. Investing is a guaranteed way to make money.

B. Investing is riskier than putting money in a savings accounts

6. Which of the following statements about savings accounts is FALSE? A. Savings accounts pay interest on the money you deposit. B. Savings accounts allow an unlimited amount of withdrawals each month. C. Savings accounts may require you to maintain a minimum balance to avoid paying a fee. D. Savings accounts are best used to store money for longer-term goals.

B. Savings accounts allow an unlimited amount of withdrawals each month.

19. Which of the following is TRUE regarding unexpected expenses? A. They usually don't affect your budget. B. They should be planned for. C. They usually don't affect your ability to pay bills. D. They should not be included in your budget.

B. They should be planned for.

10. A __________ is a share of ownership in a company A. bond B. stock C. mutual fund D. money market account is a share of ownership in a company.

B. stock

13. _____________ are good places to look to find your current expenses when building your budget A. Banks and credit unions B. Grocery stores and concerts C. Bank and credit statements D. Online research websites

C. Bank and credit statements

17. This helps you prepare for unexpected expenses. A. Credit cards B. Checking account C. Emergency fund D. None of the above

C. Emergency fund

5. 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 records to compare with your financial institution's records. D. None of the above.

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

14. Bank statements, credit statements, and records of cash expenses help you to estimate your _________. A. credit score B. emergency fund needs C. expenses D. available investments

C. expenses

9. Investing is best for ____________ A. short-term financial goals, like building an emergency fund B. earning a little interest while keeping your money safe. C. long-term financial goals, like paying for retirement. D. guaranteed fast growth on your money

C. long-term financial goals, like paying for retirement.

1. Which of the following statements about check cashing companies is TRUE? A. They have limited operating hours during the day B. They sometimes offer free services C. They charge high fees. D. They delay when you can access your cash

C.They charge high fees.

11. Which of the following is a benefit of using a budget? A. Helps to keep track of the money you receive B. Helps to prioritize your spending C. Helps reach short- and long-term financial goals D. All of the above

D. All of the above

4. Why is it important to reconcile your bank statements? A. To avoid spending more than what is in your account B . To detect any errors in your account. C. To determine if you were charged any fees D. All of the above

D. All of the above

16. Which choice or choices best describes the purpose of an emergency fund? A. An emergency fund prepares you for unexpected expenses. B. An emergency fund keeps you from borrowing money from friends and family. C. An emergency fund removes the worry about expenses not in the budget. D. All of the above are good reasons to have an emergency fund.

D. All of the above are good reasons to have an emergency fund.

12. What should be considered when setting a budget? A. Needs and wants B. Savings C. Time management goals D. Needs, wants, and savings

D. Needs, wants, and savings