Unit 2 Quiz

Overdraft protection is a required feature of most checking accounts with no ability to opt out.

• True
• False

All of the following are reasons to open a checking account EXCEPT…

• The ability to make purchases with a debit card
• Access to cash at an ATM
• Earn interest on your deposits

All of the following are ways to avoid ATM fees EXCEPT…

• Avoiding out of network ATMs
• Finding a bank that reimburses you for ATM fees
• Withdrawing money from your savings account instead of your checking account

Which of the following is typically a feature of a savings account but not a checking account?

• Your money earns interest
• Ease of making payments using a debit card
• Ability to withdraw money from an ATM

Tyreke has $5,000 to put into an account that earns compound interest. Which of the following is the BEST advice you can offer so that he can maximize interest?

• Deposit your money as early as possible in an account with the highest interest rate possible
• Compound interest will not have any effect at such a low dollar amount. Find different opportunities to earn interest on your savings.
• It's ok to open an account with a low interest rates as long as you deposit your money early

Which of the following is usually a benefit of being a member at a credit union?

• Higher interest rates and lower fees
• Higher interest rates and higher fees
• Lower interest rates and lower fees

Daisy reads her bank statement and finds an error. She should…

• Do nothing. The bank will correct the error at the end of the month.
• Call the bank. The bank will investigate the transaction to see if it was an error.
• Assume that it’s a transaction that she made and forgot about.

Which of the following is TRUE when comparing savings accounts and certificates of deposit?

• Savings accounts are FDIC insured while certificates of deposit are not
• Savings accounts allow you to access your money at all times while certificates of deposit require your money to be left alone for a set period of time
• Both savings accounts and certificates of deposit allow you to deposit money at any time

What is the most frequently charged fee on checking accounts?

• Overdraft fees
• Maintenance fees

All of the following are ways that you could potentially avoid a monthly maintenance fee on your account EXCEPT…

• Meeting a monthly minimum balance requirement
• Only banking online instead of using physical bank locations
• Finding a bank that offers accounts with no monthly maintenance fee