Unit 2 - Banking Exam

Which of the following statements is an advantage of online banking? (1 Point)

• Once you set up online banking, your bank will waive overdraft, ATM, and monthly fees

• Using online banking allows you to earn a higher interest rate

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

• You can only shop online if your bank account has online banking features

FDIC Insurance is... (1 Point)

• Optional coverage consumers can purchase so that their bank deposits remain safe

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

• Insurance bank branches can buy to protect their business against fraud and scams

• Required if you want to do online or mobile banking

Which of the following statements is TRUE? (1 Point)

• The majority of Americans have an adequate emergency fund, but do NOT have 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

• The majority of Americans have sufficient amounts of money saved for retirement

• The majority of Americans have an adequate emergency fund

Which of the following is an effective strategy for personal saving? (1 Point)

• Wait until the end of the month and save whatever is left in your checking account

• Cover all of your wants and needs and save whatever is left over

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

• Take out a payday loan so you can save before you receive your paycheck

All of the following are downsides of being unbanked EXCEPT:

• Lack of fees associated with banks

• Lost time paying bills

• Lack of access to credit

• Difficulty making cashless purchases

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

• Tina pays her neighbor $200 for breaking his window with a softball

• 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

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

• 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

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

• Daily

• Weekly

• Monthly

• Annually

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

• Days

• Weeks

• Months

• Years

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

• 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

• This account is automatically debited when you use a debit card

• This account offers a convenient way to pay bills and access cash from an ATM

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?

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

• Aunt Tina gets a paycheck one month, and her husband gets a paycheck the next month; they alternate pay periods

• Aunt Tina only receives paper paychecks instead of direct deposit

• Aunt Tina and her family have high paying jobs and don't worry much about money