Course Quiz - Financial Fitness Center

1.

What is an advantage of belonging to a bank that is online only?

More services

More customer service

Higher interest rates

Quicker access to your money

Higher interest rates. Higher interest rates are an advantage of online-only banks, but there are also disadvantages, such as fewer services provided.

2.

What does the routing number on a check refer to?

The financial institution that issued the check

Your account

The check itself

All of the above

The financial institution that issued the check. The routing number is used for this purpose.

3.

If you use a check cashing store to cash your paychecks twice per month at $6 per check, over the course of one year (24 paychecks) you will pay $_______ in fees.

$124

$144

$72

None of the above

$144. Cashing 24 paychecks at a check cashing store, at $6 each, would equal $144.

4.

You will likely be charged an ATM fee if you _______.

Have a small balance in your account

Use an ATM from a different financial institution

Withdraw more than $200

All of the above

Use an ATM from a different financial institution. Most banks charge a fee for transactions completed for non-customers. These can range from $2-6 per transaction.

5.

What does the ChexSystems database do?

Track your deposits and withdrawals at your bank or credit union

Award points for good financial behavior

Track people who mishandle their checking or savings accounts

Print affordable checks for consumers

Track people who mishandle their checking or savings accounts. ChexSystems keeps tabs on bad behavior with your checking or savings account.

6.

Suppose your balance at the end of the month in your check register is $98. Let's say you would like to have a little more of a cushion and would like your balance to be at least $200 at the end of the month. What are your options for accomplishing this?

Reduce your variable expenses, like entertainment

Eliminate a 'want' like cable

Consider reducing a fixed cost like housing/rent by moving to lower-cost housing or getting a roommate to share the rent

All of the above

All of the above. Reducing your expenses is all about making choices. What tradeoffs are you willing to make to free up additional savings dollars?

7.

Checking accounts are designed for _______ money.

Saving

Spending

Spending. As such, most of their value lies in helping you pay expenses.

8.

Good habits for monitoring and managing your accounts include _______.

Reviewing your balance 2-3 times each week or before making large purchases

Reviewing your transaction activity to be aware of your spending habits and to check for accuracy

Comparing the checks you have written to those that have been cashed per your statement or online transaction activity

All of the above

All of the above. All are good habits to incorporate into managing your daily finances.

Test your knowledge

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