Banking Basics

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

Your bank

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 financial institutions typically have the highest fees?

Check cashing and payday loan companies

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

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.

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

False

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 TRUE?

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 savings account will earn you the least money?

One that earns simple interest monthly.

Which of the following statements about savings accounts is FALSE?

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

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

Your financial institution

Investing is best for ________.

long-term financial goals, like paying for retirement.

John just opened a savings account and wants to maximize the amount of interest he earns. Which of the following actions would enable him to earn MORE interest?

- Selecting an account with a high interest rate - Leaving his money in the account for long period of time

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. - To determine if you were charged any fees.

Which of the following statements is TRUE?

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

Which of the following statements about investing is FALSE?

Investing is a guaranteed way to grow your money.

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

Access to investment products