Banking
Which of the following is the safest way to protect your ATM card PIN?
A) Share it only with close friends
B) Write it on the back of your card
C) Memorize it and don’t share it
D) Keep it on a note in your wallet
C) Memorize it and don’t share it
What does “FDIC insured” mean for a bank account?
A) The bank charges insurance fees
B) Your money is protected up to a limit
C) You can buy life insurance from the bank
D) The bank is privately owned
B) Your money is protected up to a limit
Which is a benefit of using direct deposit?
A) You must wait for a check to clear
B) Reduces need to visit the bank
C) You get paid in cash
D) It charges a fee
B) Reduces need to visit the bank
ATM stands for:
A) Automatic Transfer Money
B) Automated Teller Machine
C) Automatic Transaction Machine
D) Auto Teller Method
B) Automated Teller Machine
Which of the following should you do to avoid overdraft fees?
A) Pay in cash
B) Always carry a credit card
C) Keep track of your balance
D) Withdraw more money than available
C) Keep track of your balance
A savings account typically earns:
A) No interest
B) High interest like a CD
C) Lower interest than a checking account
D) Interest, but usually lower than other accounts
D) Interest, but usually lower than other accounts
What is the best way to keep your ATM PIN secure?
A) Tell a friend
B) Write it on your card
C) Memorize it
D) Store it in your phone contacts
C) Memorize it
Which financial product is most suitable for everyday purchases?
A) Money market account
B) CD
C) Checking account
D) Treasury bond
C) Checking account
What’s the typical consequence of bouncing a check?
A) You earn interest
B) Your credit score goes up
C) You are charged a fee
D) You receive cash back
C) You are charged a fee
What is a “minimum balance requirement”?
A) The least amount needed to open a loan
B) The most you can withdraw
C) The smallest amount to avoid fees
D) The amount the bank pays in interest
C) The smallest amount to avoid fees
Which account type is best for frequent transactions?
A) Certificate of Deposit
B) Checking account
C) Savings bond
D) Retirement account
B) Checking account
What happens if you write a check with insufficient funds?
A) The check is accepted
B) You get interest
C) The check bounces and you may be fined
D) The bank pays the check and rewards you
C) The check bounces and you may be fined
Why do banks charge overdraft fees?
A) To reward customers
B) To pay interest
C) Because you spent more than your balance
D) To increase your savings
C) Because you spent more than your balance
Which of the following is NOT typically required to open a bank account?
A) Social Security number
B) Proof of address
C) Resume
D) Government-issued ID
C) Resume
What is a benefit of online banking?
A) You must visit the bank
B) Transactions are slower
C) You can manage your money anytime
D) It only works during bank hours
C) You can manage your money anytime
What is a bank statement?
A) A document listing your job history
B) A monthly summary of your account activity
C) A form of identification
D) A letter from your employer
B) A monthly summary of your account activity
If you suspect fraudulent activity on your account, what should you do first?
A) Withdraw all your money
B) Call a friend
C) Report it to your bank immediately
D) Ignore it and wait
C) Report it to your bank immediately
A stop payment order is used to:
A) Deposit money
B) Prevent a check from being processed
C) Apply for a loan
D) Withdraw cash
B) Prevent a check from being processed
Which is an advantage of a savings account?
A) Allows unlimited withdrawals
B) Typically earns interest
C) Pays higher interest than all other accounts
D) Can be used to pay bills directly
B) Typically earns interest
Which tool can help track your checking account balance?
A) Social media
B) Check register
C) Insurance form
D) W-2 form
B) Check register
The FDIC insures deposits up to what amount per account holder, per bank (as of 2024)?
A) $50,000
B) $100,000
C) $250,000
D) $1,000,000
C) $250,000
What’s a common fee associated with checking accounts?
A) Social fee
B) Monthly maintenance fee
C) Deposit tax
D) Interest penalty
B) Monthly maintenance fee
Which of the following accounts usually limits withdrawals?
A) Checking account
B) Savings account
C) Certificate of Deposit (CD)
D) Credit card account
C) Certificate of Deposit (CD)
Mobile banking allows customers to:
A) Visit branches without traveling
B) Apply for government assistance
C) Access banking services via smartphones
D) Avoid paying taxes
C) Access banking services via smartphones
What does "balancing your checkbook" mean?
A) Carrying it evenly
B) Matching your records to the bank's
C) Writing equal checks and deposits
D) Getting a loan
B) Matching your records to the bank's