Which of the following statements is NOT true about compound interest?

It is interest on principle only.

What is the penalty for cashing in a Certificate of Deposit (CD) before its maturity date?

You lose all the interest you earned.

Which of the following is NOT true about overdraft protection?

It comes automatically with accounts.

studbud

W!se Financial Literacy Test Review-Banks/Banking

12 termsStudBud Administration1,553 plays

This quiz helps student review for the W!se Financial Literacy exam.

Flashcards12 cardsFPractice quizPHost liveL

Questions 12

Answers

1
Which of the following is NOT true about credit unions?
They are insured by the FDIC.
They call their checking accounts share accounts.
They are non-profit institutions owned by members.
They offer better rates than banks.
2
Which of the following institutions does NOT give loans to consumers?
Finance and tax preparation companies
Ms. Nabrotzky
Banks and credit unions
Pawn shops and payday lenders
3
Banks must report deposits of $10,000+ to the IRS (U.S. Treasury Department).
False
True
4
Which of the following statements is NOT true about compound interest?
Einstein felt it was the 8th wonder of the world.
It is interest on interest AND principle.
It is interest on principle only.
It snowballs over time.
5
If Ms. Nabrotzky is earning a 4% rate of return, when will her investment double in value?
12 years
18 years
8 years
26 years
6
What does PYF stand for?
Pay yourself first!
Party at your friend's house!
Please yell fire!
Play your finest!
7
Thanks to technology, all checks clear banks within 24 to 48 hours.
False
True
8
What is the penalty for cashing in a Certificate of Deposit (CD) before its maturity date?
You lose all the interest you earned.
You get an early redemption fine.
There is no penalty.
You have to pay double taxes on the interest.
9
When should you reconcile your bank account?
Never
Monthly
Daily
Weekly
10
Which of the following is NOT an appropriate way to endorse a check?
restrictive endorsement
special endorsement
protective endorsement
blank endorsement
11
Which of the following institutions charges the highest interest on loans to consumers?
Pawn shops and payday lenders
Banks and credit unions
Finance and tax preparation companies
Ms. Nabrotzky
12
Which of the following is NOT true about overdraft protection?
It comes automatically with accounts.
It prevents checks from bouncing and incurring NSF fees..
It has monthly service fees.
It works like a loan with an interest charge.

W!se Financial Literacy Test Review-Banks/Banking Flashcards | StudBud