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Financial Literacy and Banking Basics Flashcards | StudBud
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Financial Literacy and Banking Basics
Financial Literacy and Banking Basics
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36
Answers
1
What is a benefit of having a bank account?
Credit Building: Helps establish financial history
Safety: Keeps your money secure & reduces the risk of loss or theft
Convenience: Easy access to funds & tools for managing finances
Earnings: Savings accounts & CDs can generate interest
2
What is the largest concern for checks?
There are no concerns with using checks
Fraud/theft risks are higher
Not easy to track
Not considered legal tender
3
FDIC stands for Federal Deposit Insurance Corporation.
True
False
4
What are the benefits of a debit card?
For individuals or businesses without access to digital banking
A safety delay, easier to carry, hard to steal
Immediate, pulls from checking accout, easier to carry, safer than cash
5
Type of Bank: Focus on services for businesses
Credit Union
Online
Retail
Commercial
6
Account Type: Fixed-term account offering higher interest rates, funds are locked in for a set period
Savings Account
Money market account
Certificate of Deposit
Checking Account
7
What is your comfort level with filling out a bank deposit slip?
Non-existent
Okay
Very
8
When opening a bank account you should research different banks to see which one will work best for your needs.
True
False
9
Which of the following is NOT required to open a checking account?
Proof of Address
Your or your parents' previous year's tax return
Opening deposit $
Identification
10
Account type: Used for daily transactions (e.g., deposits, withdrawals, bill payments)
Checking Account
Money Market Account
Savings Account
Certificate of Deposit
11
Do you feel comfortable writing out a check?
Sort of
Yes
No
12
Benefits of checks:
Not Technology Dependency
Delay in Payment Processing
Secure for Large Transactions
Paper Trail for Record-Keeping
13
True or False: "Checking account" means the account requires you to keep checking on it to see how your money performs.
False
True
14
Account Type: Designed for storing money & earning interest
Checking Account
Certificate of Deposit
Savings Account
Money market account
15
A bank deposit slip:
a slip when you receive when you join life cover
slip you fill out when money is being deposited to bank account
a slip when fixed deposit is made
a slip received when money is withdrawn from the bank
16
Define Direct Deposit
Paycheck automatically deposited electronically bank account
a set amount for each hour employee works
receiving 24 paychecks per year
pay day fall on the same day of the week
17
Why is financial literacy important?
to understand how to build wealth
to better understand credit scores, risk, interest rates
All of the above
to know the basics of personal fiance and money management
18
Account Type: A hybrid of savings & checking with higher interest rates
Certificate of Deposit
Checking Account
Money market account
Savings Account
19
Type of Bank: Member-owned financial cooperatives
Commercial
Retail
Credit Union
Online
20
To maintain the security of your account you should:
Enable two-factor authentication (online)
Regularly review account statements for unauthorized transactions
All of the above
Use strong, unique passwords for online banking
21
Mobile banking fees are typically higher than traditional banking fees.
True
False
22
What is a check?
All of the above
A legal document
A type of money
Paper based
23
Debit cards and checks pull money from your:
Savings Account
Certificate of Deposit
Both Checking and Savings
Checking Account
24
What are two banking fees?
Non-sufficient funds/overdraft fees and ATM fees
housing fees and food fees
25
Your financial literacy will...
will be completed when this class is over
never be over, it is a life long learning experience
will be completed when you move out onto your own
26
Overdraft protection...
is a fee-free service that prevents you from overdrawing
brings in a few hundred dollars each year to banks
is a service offered only for premium checking accounts
can keep you from overdrawing but charges a fee
27
Common banking fees:
Monthly maintaince feed
out-of-network atm fee
minimum balance fee
overdraft fee
28
Most banks today have an online presence, but there are some banks that are ONLY online.
False
True
29
In order to withdraw money from an ATM you need a:
A Check
Credit Card
Your drivers license
A Debit Card
30
Type of Bank: Serve individuals with basic banking needs
Credit Union
Online
Retail
Commercial
31
Banks are:
Created for us
Businesses
32
Do you feel comfortable filling out a bank despot slip?
Yes
Sort of
No
33
What is financial literacy?
The knowledge and skill base to be an informed consumer & manage finances.
The skills to read financial documents for classes, goals, and statements.
The curriculum provided for college students about finances.
The content provided in bank statements for consumers.
34
Banks goal is to help you, the reason they exist is for you.
False
True
35
FDIC Insurance is...
Protection for deposits up to $250,000, guaranteeing their money
Insurance bank can buy to protect their business against fraud and scams
coverage consumers can purchase so that their bank deposits remain safe
Required if you want to do online or mobile banking
36
If you are withdrawing money from an ATM it is best to look for:
An out of network ATM
An in-network ATM
