Personal Finance Everfi test review

A stock is ________.

A share of ownership in a company

What should you do before you approach an ATM?

check for any suspicious people lurking nearby

Which type of bank account is best for everyday transactions?

checking account

Which of the following statements about stocks is TRUE?

A stock is a share of ownership in a company

What should you do before you withdraw money from the ATM?

Inspect the ATM to make sure it wasn't tampered with

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

True

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

Your financial institution

Which of the following statements about check cashing companies is TRUE? a) They charge high fees b) They have limited operating hours during the day c) They delay when you can access your cash d) They sometimes offer free services

a) they charge high fees

Which of the following statements about investing is FALSE? a. investing is a guaranteed way to grow your money b. investing is best for long-term financial goals, like paying for retirement c. investing is riskier than putting money in a savings account d. on average, investing money in the stock market earns a higher return than putting money in a savings account

a. investing is a guaranteed way to grow your money

Which savings account will earn you the least money? a. one that earns simple interest monthly b. one that compounds interest monthly c. one that earns simple interest daily d. one that compounds interest daily

a. one that earns simple interest monthly

Which of the following statements about savings accounts is FALSE? a. saving accounts don't usually require a minimum balance b. saving accounts limit the number of withdrawals that can be made each month c. saving accounts are best used to store money for longer-term goals d. saving accounts usually pay interest the money you deposit

a. saving accounts don't usually require a minimum balance

Which of the following is NOT a common feature of a financial institution? a) direct deposit b) Access to investment products c) access to ATMs d) paper checks

b) Access to investment products

Which of the following financial institutions typically have the highest fees? a. Credit unions b. check cashing and payday loan companies c. brick-and-mortar banks d. internet banks

b. check cashing and payday loan companies

How would you reconcile your bank account to avoid spending more than you have? a. Contact your financial institution to read your transactions for the past month b. compare your own records of your spending with your financial institution's records c. review your bank statement once at the end of the month d. none of the above

b. compare your own records of your spending with your financial institution's records

Which of the following is NOT a common feature of a financial institution? a. paper checks b. checking and saving accounts c. Access to investment advice d. direct deposit

c. Access to investment advice

Which of the following is NOT a common feature of a financial institution? a. access to ATMS b. direct deposit c. Investment trading d. debit cards

c. Investment trading

Which of the following statements is TRUE? a. if there is a mistake on one of your bank accounts, there is nothing you can do about it b. if there is a mistake on one of your bank accounts, you should wait 30 days as these issues tend to resolve themselves c. if there is a mistake on your bank account, you should contact your financial institution immediately d. none of the above

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

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

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

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

c. saving accounts allow an unlimited amount of withdrawals each month

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

checking account

Which of the following statements about savings accounts is FALSE? a) Saving accounts are best used to store money for longer-term goals b) Saving accounts may require you to maintain minimum balance to avoid paying a fee c) Saving account limit the number of withdrawals that can be made each month d) Saving accounts don't usually pay interest on the money you deposit

d) Saving accounts don't usually pay interest on the money you deposit

Which type of bank account typically offers the least (if any) interest? a. money market account b. certificate of deposit c. savings account d. Checking account

d. Checking account

Which of the following statements about check cashing companies is FALSE? a. They make it easy to fall into a loan cycle that is hard to get out of b. They offer bad deals where you'll owe a lot more than you borrowed c. They can take a percentage of your check on top of fees d. They charge low fees

d. They charge low fees

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

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 best for short-term financial goals c. Investing is a guaranteed way to make money d. investing is riskier than putting money into a savings account

d. investing is riskier than putting money into a savings account

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

false

What should you do before you use an ATM?

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

Which savings account will earn you the most money?

one that compounds interest daily

A _______ is a share of ownership in a company.

stock