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