EverFI Banking Final Quiz Answers
1) Which of the following is a primary responsibility of the Federal Reserve Bank?
Establish monetary policy
Pass monetary laws
Collect taxes
Print money
Answer: Establish monetary policy
2) Which type of account will typically have the highest interest rate?
Checking Account
Savings Account
Money Market Account
Certificate of Deposit (CD)
Answer: Certificate of Deposit (CD)
3) Which type of financial institution typically has membership requirements?
Credit Union
Online Commercial Bank
Commercial Bank
Federal Reserve Bank
Answer: Credit Union
4) Which of the following fees would likely be the highest?
Overdraft fee
Account transfer fee
Monthly service fee
ATM fee
Answer: Monthly service fee
5) What’s the purpose of balancing or monitoring your checking account?
To find out which checks you have bounced
To help you calculate how much money you have in your account
To keep an estimation of how many checks you write
To stop identity theft from occurring
Answer: To help you calculate how much money you have in your account
6) Usually provides access to online banking options.
Retail Bank
Online Bank
Credit Union
All of the Above
Answer: All of the Above
7) Membership may be exclusive to certain people or groups, like members of the military or people who work in a specific industry.
Retail Bank
Online Bank
Credit Union
All of the Above
Answer: Credit Union
8) Ability to meet with a bank representative in person.
Retail Bank
Online Bank
Credit Union
A&C
Answer: A&C
9) Access to Checking & Savings Accounts
Retail Bank
Online Bank
Credit Union
All of the Above
Answer: All of the Above
10) Owned & Run by it’s Members
Retail Bank
Online Bank
Credit Union
All of the Above
Answer: Credit Union
11) Access to local ATM
Retail Bank
Online Bank
Credit Union
All of the Above
Answer: All of the Above
12) The primary goal of the Federal Reserve system is to:
maintain a safe and stable banking system
keep banks up-to-date on the latest economic research
provide budget recommendations to the Treasury Department
ensure interest rates for savings accounts stay high
Answer: maintain a safe and stable banking system
13) Which of the following statements about FDIC-insured accounts is correct?
FDIC insures deposits up to $250,000 per person per bank
keep banks up-to-date on the latest economic research
Both A & B
Neither A nor B
Answer: FDIC insures deposits up to $250,000 per person per bank
14) If you need to set up direct deposit, which information from your check would you likely need?
Check number
Memo line
Numerical
Routing number
Answer: Routing number
15) Which type of account typically has low liquidity?
Checking Account
Savings Account
Money Market Account
Certificate of Deposit (CD)
Answer: Certificate of Deposit (CD)
16) The three parts of the Federal Reserve System are the Reserve Banks, the Federal Open Market Committee (FOMC), and the:
Board of Governors
United States Mint
Department of the Treasury
Secretary of State
Answer: Board of Governors
17) Which of the following is NOT one of the responsibilities of the Federal Reserve?
Supervising the Reserve banks
Maintaining a stable banking system
Setting the nation’s monetary policy
Establishing the federal budget
Answer: Establishing the federal budget
18) Which type of account is typically the MOST liquid?
Checking account
Savings account
Certificate of Deposit
Exchange Traded Fund
Answer: Checking account
19) What part of a check is the LEAST important?
The check
Signature line
Memo line
Routing number
Answer: Memo line
20) What’s the best strategy for avoiding ATM fees?
Only use ATMs close to your house
Only use ATMs to withdraw cash
Only use ATMs in your bank’s network
Only use ATMs you have used before
Answer: Only use ATMs in your bank’s network
21) Which type of account will typically have the highest interest rate?
Checking
Savings
Money Market
Certificate of Deposit (CD)
Answer: Certificate of Deposit (CD)
22) The numbers on the bottom of a typical check represent all of the following EXCEPT?
Social Security Number
Routing Number
Account Number
Check Number
Answer: Social Security Number
23) The best way to ensure the accuracy and safety of your accounts is to:
Monitor your online accounts regularly
Shred your paper account statements weekly
Call your customer service center daily
Balance your checkbook annually
Answer: Monitor your online accounts regularly
24) Which of the following is not a type of bank?
Credit Union
Online Bank
Payday Lender
Retail Bank
Answer: Payday Lender
What are the three main responsibilities of the Federal Reserve?
Answer:
1. Provide and Maintain an effective payment system
2. Supervise and regulate banking operations
3. Conduct monetary policy
Which type of financial institution typically has some sort of requirement to be a member?
Answer: Credit Union
Which type of bank account is typically the most liquid?
Answer: Checking Account
Compare/ contrast a checking account and savings account. Which offers more interest? Which is easier to get money out of?
Answer: Savings account offers more interest. Checking accounts are more easier to get your money out of.
Between checking, savings, money market, and certificate of deposit, which typically has the highest interest rate? Which has the lowest liquidity?
Answer: Certificate of Deposit (CD)
What are the three parts of the Federal Reserve System?
Answer:
1.Reserve Banks
2.Federal Open Market Committee
3.Board of Governors.
List four possible fees associate with a checking account. Which is likely to be the highest
Overdraft fee, Account transfer fee, Monthly service fee, ATM fee. ATM fee is highest.
What are some unique features of a credit union?
Answer:
1.Credit Unions are typically owned and run by their members.
2.Credit Unions offer a wide variety of banking services
What three things do the numbers on the bottom of a typical check represent?
Answer:
1. Routing Number
2. Account Number
3. Check Number
Which part of the check is the least important?
Answer: Memo line
How often should you typically monitor your checking account?
Answer: Monthly
What is a payday lender? Why should you avoid them?
Answer: They’re not a type of bank, but a type of loan. They’re very xpenisce and your debt will grow fast.
How do you avoid paying ATM fees?
Answer: Only use ATM’s in your banks network
What is the purpose of of balancing or monitoring your checking account?
Answer: Helps you calculate how much money you have in your account.
What is the best way to ensure the accuracy and safety of your accounts?
Answer: Monitor your accounts regularly.
With a traditional savings account, there might be a fee for withdrawing money ______ _________.
Answer: too; often