Banking Basics

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

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

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

• They offer bad deals where you'll owe a lot more than you borrowed.

• They charge low fees.

• They can take a percentage of your check on top of fees.

• They make it easy to fall into a loan cycle that is hard to get out of.

Which type of bank account is best for everyday transactions?

• Checking Account

• Savings Account

• Money Market Account

• Certificate of Deposit

What should you do before you use an ATM?

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

• Ask someone nearby for help using the ATM.

• Share your pin number with trusted friends so you don't forget it.

• Memorize your debit card number because you'll need to type it in at the ATM.

Which of the following statements about investing is FALSE?

• Investing is a guaranteed way to grow your money.

• Investing is riskier than putting money in a savings account.

• Investing is best for long-term financial goals, like paying for retirement.

• On average, investing money in the stock market earns a higher return than putting money in a savings account.

If there is an issue with your bank statement or account balance, who should you contact to resolve the issue?

• The local police station

• Your bank

• The CFPB

• All of the above

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

• Checking account

• Savings account

• Money market account

• Certificate of deposit

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

• The CFPB

• No one, you can't resolve the issue

• The local police station

• Your financial institution

Investing is best for ________.

• short-term financial goals, like building an emergency fund.

• earning a little interest while keeping your money safe.

• long-term financial goals, like paying for retirement.

• guaranteed fast growth on your money.