Strategy Beginner: Choosing a Savings or Checking Account

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Choose wisely. There is only one correct answer to each question.

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1.
If you close a savings or checking account and get charged a fee because of that, it's probably because you didn't keep it open as long as you had agreed to when you first opened it.
Choose wisely. There is only one correct answer.
True. This is the most likely reason why you'd be charged a fee for closing an account.
2.
A savings account for a working teenager can help him or her save money because it helps discourage paychecks from being spent right away.
Choose wisely. There is only one correct answer.
True. That, in turn, can put a damper on excessive spending.
3.
What type of earnings are paid on credit union savings accounts?
Choose wisely. There is only one correct answer.
Dividends. While banks pay interest, credit unions pay dividends.
4.
An online-only financial institution does not have a physical location.
Choose wisely. There is only one correct answer.
True. This type of financial institution is found only on the Internet.
5.
Which of the following is the best reason why checking accounts aren't effective for saving money?
Choose wisely. There is only one correct answer.
They are designed for spending money. Because they are designed to be spent by you rather than used by the institution holding them, they pay them little or no earnings.