Everfi Module 1 - Banking Basics
Which savings account will earn you the least money?
One that earns simple interest monthly.
Which type of bank account is best for everyday transactions?
Checking Account
If there is a mistake with one of your bank accounts, who should you contact to resolve the issue?
Your financial institution
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.
Which of the following is NOT a common feature of a financial institution? - Access to investment products - Paper checks - Access to ATMS - Direct deposit
Access to investment products
Which of the following financial institutions typically have the highest fees? - Check cashing and payday loan companies - Credit unions - Brick-and-mortar banks - Internet banks
Check cashing and payday loan companies
Which type of bank account typically offers the least (if any) interest?
Checking account
How would 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 statements is TRUE? - If there is a mistake on one of your bank accounts, there is nothing you can do about it. - If there is a mistake on one of your bank accounts, you should wait 30 days as these issues tend to resolve themselves. - If there is a mistake on your bank account, you should contact your financial institution immediately. - None of the above.
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?
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. - Investing is riskier than putting money in a savings account. - Investing is best for long-term financial goals, like paying for retirement. - On average, investing money in the stock market earns a higher return than putting money in a savings account.
Investing is a guaranteed way to grow your money.
Which of the following statements about investing is TRUE? - On average, putting money in a savings account earns a higher return than investing money in the stock market. - Investing is riskier than putting money in a savings accounts. - Investing is best for short-term financial goals. - Investing is a guaranteed way to make money.
Investing is riskier than putting money in a savings accounts.
Which savings account will earn you the most money?
One that compounds interest daily.
Which of the following statements about savings accounts is FALSE? - Savings accounts pay interest on the money you deposit. - Savings accounts allow an unlimited amount of withdrawals each month. - Savings accounts may require you to maintain a minimum balance to avoid paying a fee. - Savings accounts are best used to store money for longer-term goals.
Savings accounts allow an unlimited amount of withdrawals each month.
Why is it important to reconcile your bank statements?
To avoid spending more than what is in your account, To detect any errors in your account, and To determine if you were charged any fees. (All of the above)
If there is an issue with your bank statement or account balance, who should you contact to resolve the issue?
Your bank
Investing is best for ________.
long-term financial goals, like paying for retirement.
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 about savings accounts is FALSE? - Savings accounts don't usually pay interest on the money you deposit. - Savings accounts limit the number of withdrawals that can be made each month. - Savings accounts may require you to maintain a minimum balance to avoid paying a fee. - Savings accounts are best used to store money for longer-term goals.
Savings accounts don't usually pay interest on the money you deposit.