Banking and Financial Literacy Quiz

Which of the following choices lists assets from MOST liquid to LEAST liquid?

• Savings accounts, certificates of deposit (CD), real estate.

• Money market accounts, bonds, checking accounts.

• Stocks, savings accounts, money market accounts.

• Bonds, real estate, certificate of deposit (CD).

Which of the following reasons might lead someone to decide not to give a gift card to someone?

• Gift cards may not always be appreciated and may disappoint the recipient.

• Gift cards must be personalized and require more thought compared to other gifts.

• Gift cards can expire or include fees that reduce their value over time.

• Gift cards provide the recipient with unlimited options and flexibility in their purchases.

Which of the following is the safest option for receiving payment, instead of cash, if selling an item to an unknown person?

• Crypto currency.

• Personal check.

• Money order.

• Loan agreement.

A person writes a check for $250. They have no overdraft protection and a current account balance of $175. Their bank will likely

• return the check because of insufficient funds and charge a fee.

• pay the check and ask the customer to make an additional deposit.

• set up a loan for the difference.

• Close the person’s bank account.

Which of the following best describes the difference between a debit and credit card?

• Debit cards allow you to spend money that you already have in your bank account, while credit cards allow you to borrow money up to a certain amount.

• Debit cards have higher interest rates compared to credit cards.

• Credit cards are linked to your checking account, while debit cards are linked to a line of credit.

• Debit cards require a credit check, while credit cards do not.

Which statement best describes a credit union?

• A non-profit organization that offers financial services to its members.

• A for-profit organization that offers financial services to the public.

• A government agency that regulates banking practices.

• A corporation that extends credit to its members and the public.

What is the primary purpose of banks?

• To provide storage for valuable assets.

• To offer educational programs.

• To safeguard money and provide financial services.

• To sell investment products.

A restricted endorsement typically includes __________________.

• A person’s signature and account number.

• A person’s signature and “For Deposit Only.”

• The date and the person’s address.

• The date and “Pay to the Order Of.”

When a person reconciles a bank account, they

• Withdraw money from the account.

• Deposit money into the account.

• Compare the bank statement with the account holder's records and make any necessary adjustments.

• Request overdraft protection to avoid paying bank fees.

Why might a person place a stop payment on a check?

• To authorize payment of the check.

• To cancel the check and prevent it from being cashed.

• To increase the amount of the check.

• To speed up the processing of the check.