Finance- Banking Basics Quiz

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

Access to investment advice

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.

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

Check cashing and payday loan companies

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

Checking account

Which type of bank account is best for everyday transactions?

Checking account

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

False

What should you do before you use an ATM?

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

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

Keep your own records to compare your banks records

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 allow unlimited withdraw each month

Which of the following statements about savings accounts is FALSE? #2

Savings accounts don't usually require a minimum balance.

A savings account that compounds interest daily will earn a higher return than a savings account that pays simple interest daily.

True

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

True

A stock is ________.

a share of ownership of a company

Investing is best for ________.

long-term financial goals, like paying for retirement

A _______ is a share of ownership in a company.

stock

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

they charge high fees

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

Checking account