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100

Three of these statements best describe a checking account. Which statement best describes a savings account?

  1. This account offers a convenient way to pay bills and access cash from an ATM
  2. This account pays you interest on money you have put away for later to help your money grow
  3. This account is automatically debited when you use a debit card
  4. This account typically allows an unlimited number of transactions per month

This account pays you interest on money you have put away for later to help your money grow

100

Fill in the blanks with the correct responses.  If you follow the 50-30-20 rule of budgeting, you'll be putting 50% of your monthly income toward _______________, 30% of your monthly income toward _____________, and 20% of your monthly income toward ______________.

  1. Needs, wants, savings
  2. Savings, needs, wants
  3. Needs, savings, wants
  4. Wants, needs, savings

Needs, wants, savings

100

Jocelyn gets a text alert from the bank that her account balance has dropped below $100 after a series of $20 ATM withdrawals. She has not used her ATM in over a week and wonders what she should do. What would you recommend?

  1. Wait until her monthly statement arrives so she can check to see if those withdrawals are still there
  2. Wait a week as it is fairly common for the bank to catch mistakes like this
  3. Check her wallet to be sure her debit card has not been stolen.  If she still has it, then she should not worry.
  4. Contact her bank immediately as it appears that her account may have been hacked

Contact her bank immediately as it appears that her account may have been hacked

100

All of the following are true about prepaid cards EXCEPT…

  1. Prepaid cards typically include a lot of fees
  2. Prepaid cards are a useful option for someone who is unbanked to make online purchases
  3. Prepaid cards are a great way to build credit
  4. Prepaid cards are usually accepted anywhere that debit and credit cards are accepted

Prepaid cards are a great way to build credit

100

All of the following are downsides of being unbanked EXCEPT:

  1. Lack of access to credit
  2. Lost time paying bills
  3. Lack of fees associated with banks
  4. Difficulty making cashless purchases

Lack of fees associated with banks

200

Juan saved $1,000 from his summer job cleaning pools. Which of these account types would work best for him if he doesn't need access to the money for a number of years AND wants to earn the highest interest rate?

  1. Regular savings account
  2. Money Market account
  3. Checking account
  4. Certificate of Deposit

Certificate of Deposit

200

Which of the following is an effective strategy for personal saving?

  1. Wait until the end of the month and save whatever is left in your checking account
  2. Save a certain percentage of each paycheck and deposit it directly into a savings account
  3. Cover all of your wants and needs and save whatever is left over
  4. Take out a payday loan so you can save before you receive your paycheck

Save a certain percentage of each paycheck and deposit it directly into a savings account

200

Fill in the blanks: Direct deposit typically refers to your ______ sending your ______ electronically to your bank account.

  1. employer, bills
  2. employer, paycheck
  3. parents, allowance
  4. state government, taxes

employer, paycheck

200

You overhear your Aunt Tina tell your mom that she, her husband, and their kids are "living paycheck to paycheck." What does Aunt Tina mean by that?

  1. Aunt Tina gets a paycheck one month, and her husband gets a paycheck the next month; they alternate pay periods
  2. Aunt Tina and her family don't have any money saved, and their paychecks are just barely covering monthly expenses
  3. Aunt Tina and her family have high paying jobs and don’t worry much about money
  4. Aunt Tina only receives paper paychecks instead of direct deposit

Aunt Tina and her family don't have any money saved, and their paychecks are just barely covering monthly expenses

200

How often do customers typically receive a bank statement for their checking account?

  1. Daily
  2. Weekly
  3. Monthly
  4. Annually

Monthly

300

All of the following statements about bank accounts are true EXCEPT…

  1. If the bank account is FDIC-insured, your money is safe even if the bank fails
  2. Many banks pay interest on the money you deposit into your savings account
  3. Historically, savings accounts earn higher returns than investments in the stock market
  4. Money in a checking account is usually easy to access via ATM, debit card or check

Historically, savings accounts earn higher returns than investments in the stock market

300

Experts recommend that you accumulate enough to cover 3 to 6 __________________ of expenses in your emergency fund.

  1. Days
  2. Weeks
  3. Months
  4. Years

Months

300

You are at the checkout counter at the local supermarket and use your debit card to pay for your groceries. Where does the money for this purchase come from?

  1. Your credit card company covers the cost
  2. It is deducted directly from your checking account
  3. Your credit card company provides you with a cash advance to cover the cost
  4. It is deducted directly from your savings account

It is deducted directly from your checking account

300

Which of the following transactions will REDUCE your checking account balance immediately?

  1. Writing your monthly rent check which you will mail tomorrow
  2. Using your debit card to pay for groceries at the supermarket
  3. Using your credit card to pay for your school books
  4. Depositing a check at a local bank branch

Using your debit card to pay for groceries at the supermarket

300

Which of the following statements is TRUE?

  1. The majority of Americans have an adequate emergency fund
  2. The majority of Americans have sufficient amounts of money saved for retirement
  3. The majority of Americans have an adequate emergency fund, but do NOT have sufficient amounts of money saved for retirement
  4. The majority of Americans do NOT have an adequate emergency fund or sufficient amounts of money saved for retirement

The majority of Americans do NOT have an adequate emergency fund or sufficient amounts of money saved for retirement

400

Which of these lists ranks the savings options from highest expected interest rate to lowest expected interest rate?

  1. Online savings account, 5-year CD, Savings account at traditional bank, 10-year CD
  2. Savings account at traditional bank, online savings account, 5-year CD, 10-year CD
  3. Savings account at traditional bank, online savings account, 10-year CD, 5-year CD
  4. 10-year CD, 5-year CD, Online savings account, Savings account at traditional bank

10-year CD, 5-year CD, Online savings account, Savings account at traditional bank

400

You are developing a savings plan and using short-, medium-, and long-term goals to motivate you. Which represents possible goals from short-term to long-term? Save for…

  1. Retirement, a house down payment, college tuition
  2. A new cell phone, college tuition, a house down payment
  3. A new cell phone, dinner with friends this weekend, a new bike
  4. Retirement, college tuition, a vacation

A new cell phone, college tuition, a house down payment

400

Which of the following statements is an advantage of online banking?

  1. Once you set up online banking, your bank will waive overdraft, ATM, and monthly fees
  2. Using online banking allows you to earn a higher interest rate
  3. Using online banking, you can request transfers, pay bills and automate your savings without visiting the bank branch
  4. You can only shop online if your bank account has online banking features

Using online banking, you can request transfers, pay bills and automate your savings without visiting the bank branch

400

FDIC Insurance is...

  1. Optional coverage consumers can purchase so that their bank deposits remain safe
  2. Insurance bank branches can buy to protect their business against fraud and scams
  3. Required if you want to do online or mobile banking
  4. Protection for bank customers’ deposits up to $250,000, guaranteeing their money is still available if the bank goes out of business

Protection for bank customers’ deposits up to $250,000, guaranteeing their money is still available if the bank goes out of business

400

Which represents the BEST time to start saving for your retirement?

  1. As soon as you have your first full-time job
  2. Right after you pay off your student loans
  3. Once you are debt-free, including paying off all credit cards, auto loans, and your mortgage
  4. At age 45, so you have exactly 20 years until retirement

As soon as you have your first full-time job

500

Fill in the blanks:  If inflation is _____________ your savings account interest rate then you will be ______________ purchasing power.

  1. Higher than, gaining
  2. Higher than, losing
  3. Equal to, gaining
  4. Lower than, losing

Higher than, losing

500

Joelle wants to have an emergency fund to cover 6 months of her expenses. Her monthly gross pay is $4,000 and her monthly expenses are $2,000. If she plans to save 10% of her gross pay each month, how long will it take her to build her emergency fund?

  1. 3 months
  2. 9 months
  3. 24 months
  4. 30 months

30 months

500

When signing up for a new checking account, you answer "Yes" to receive overdraft protection. On this day, you have $10 in your account and go out and use your debit card to buy lunch for $12, a movie ticket for $12 and dinner for $15. What is likely to be the outcome resulting from these transactions?

  1. Your account will be closed
  2. You will likely be charged an overdraft fee for one or more of the transactions and also will need to repay the bank for the amount overdrawn
  3. Since you requested overdraft protection, the bank will not allow you to overdraw your account so your debit card will be denied
  4. The bank will provide you five days to add funds to your account to cover the overdraft and no fees will be assessed

You will likely be charged an overdraft fee for one or more of the transactions and also will need to repay the bank for the amount overdrawn

500

A person-to-person payment app could be used in each of the following scenarios EXCEPT...

  1. Tina pays her neighbor $200 for breaking his window with a softball
  2. Rafael writes a check to cover the entire month’s rent, and his roommates Valerie and Carlos pay Rafael for their share of the monthly rent
  3. Ahmed's soccer coach pays the team's registration fee for a big tournament, and each player then owes him $35 for their share of the registration fee
  4. Mia pays Cheesy Pizza Co. for a pizza she orders on their website

Mia pays Cheesy Pizza Co. for a pizza she orders on their website

500

When signing up for a new checking account you answer "No" and opt out of overdraft protection. On this day, you have $10 in your account and go out and use your debit card to buy lunch for $12, a movie ticket for $12 and dinner for $15. What is likely to be the outcome resulting from these transactions?

  1. Your account will be closed
  2. You will likely be charged an overdraft fee for one or more of the transactions and also will need to repay the bank for the amount overdrawn
  3. Since you declined overdraft protection, the bank will not allow you to overdraw your account so your debit card will be denied
  4. The bank will provide you five days to add funds to your account to cover the overdraft and no fees will be assessed

Since you declined overdraft protection, the bank will not allow you to overdraw your account so your debit card will be denied