Course Quiz - Financial Fitness Center

1.

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.

2.

Which of the following best explains why checking accounts aren't effective for saving money?

They are designed for spending money

Their fees are too high

They can't earn interest or dividends

None of the above

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 little or no earnings.

3.

If your checking account has a debit card associated with it, you should ________ if you don't want to be able to overdraw your account to complete a transaction with your debit card.

Opt in

Opt out

Use your ATM card

Both opt out and use your ATM card

Opt out. If you opt out, you will not be approved to buy something that costs more than what you have available in your account. This is a good way to ensure you do not overdraw your account and encounter expensive fees.

4.

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?

5.

An overdraft fee occurs when your checking account withdrawals ________.

Exceed the transaction limit for the month

Bring your account balance below zero

Exceed your dollars you deposit for the month

All of the above

Bring your account balance below zero. Your account is overdrawn when your balance goes below zero. It doesn't matter how many transactions you complete in the month or how much you deposit. It is based solely on your balance at the end of each business day.

6.

Your deposits at a bank or credit union are insured.

True

False

True. Your deposit dollars are guaranteed up to a minimum of $250,000.

7.

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.

8.

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.

Test your knowledge

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