Which of the following is NOT true about overdraft protection?

It comes automatically with accounts.

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 statements is NOT true about compound interest?

It is interest on principle only.

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Duplicate of W!se Financial Literacy Test Review-Banks/Banking

12 termsStudBud Administration

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

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Questions 12

Answers

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

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