Questions and Answers
Which of the following is NOT a common feature of a financial institution?
Which of the following statements about check cashing companies is TRUE?
True
Which of the following financial institutions typically have the highest fees?
Which of the following statements about check cashing companies is FALSE?
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Which type of bank account typically offers the least (if any) interest?
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Savings accounts typically offer more interest than what type of account?
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Which type of bank account is best for everyday transactions?
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A savings account that compounds interest daily will earn a higher return than a savings account that pays simple interest daily.
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Which savings account will earn you the least money?
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Which savings account will earn you the most money?
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Why is it important to reconcile your bank statements?
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How can you avoid spending more than what is in your bank account?
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How would you reconcile your bank account to avoid spending more than you have?
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What should you do before you withdraw money from the ATM?
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What should you do before you approach an ATM?
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What should you do before you use an ATM?
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Which of the following statements about savings accounts is FALSE?
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Which of the following statements about savings accounts is FALSE?
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Which of the following statements is TRUE?
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If there is a mistake on one of your bank accounts, who should you contact to resolve the issue?
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If there is an issue with your bank statement or account balance, who should you contact to resolve the issue?
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Your financial institution can't help you if there is a mistake on your bank account statement.
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Which of the following statements about investing is TRUE?
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Investing is best for...
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Which of the following statements about investing is FALSE?
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A stock is...
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A mutual fund is...
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Which of the following statements about stocks is TRUE?
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Paying only the minimum balance on your credit card can lead to...
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Study Notes
Financial Institutions
- Common features of financial institutions include investment products, trading, and advice.
Check Cashing Companies
- Check cashing companies are known for charging high fees.
- They do not charge low fees, contrary to some misconceptions.
Types of Bank Accounts
- Checking accounts typically offer little to no interest.
- Savings accounts usually provide more interest compared to checking accounts.
- Checking accounts are the best option for everyday transactions.
Interest on Savings Accounts
- Savings accounts that compound interest daily yield higher returns than those with simple interest.
- Accounts earning simple interest monthly will generate the least income.
Importance of Reconciliation
- Reconciling bank statements is crucial to prevent overspending, detect errors, and identify fees charged.
Managing Bank Account Spending
- Maintain personal records to compare with financial institution statements and avoid exceeding account limits.
ATM Safety
- Inspect ATMs for tampering and check surroundings for suspicious individuals before use.
Savings Account Regulations
- It is false that savings accounts allow unlimited withdrawals monthly or that they typically don't require a minimum balance.
Addressing Bank Errors
- Report any mistakes on bank accounts to the financial institution promptly for resolution.
Investing Basics
- Investing is inherently riskier than savings account deposits.
- Ideal for long-term financial goals, such as retirement funding.
- It is a misconception that investing guarantees money growth.
Investment Types
- Stocks represent ownership in a company.
- Mutual funds consist of a diversified mix of investments.
Credit Card Management
- Paying only the minimum balance on a credit card increases interest costs.
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Description
Test your knowledge with this quiz on financial institutions covered in Everfi Module 1. Questions include topics like investment products, check cashing companies, and fees associated with different financial institutions. Perfect for reinforcing your understanding of financial literacy concepts.
