Everfi Module 1 - Banking Basics Exam Questions (20 Terms) With Verified Definitions Updated 2024

Which savings account will earn you the least money? {Ans: One that earns simple interest monthly.}Which of the following financial institutions typically have the highest fees? - Check cashing and payday loan companies - Credit unions - Brick-and-mortar banks - Internet banks {Ans: Check cashing and payday loan companies}Which of the following statements about savings accounts is FALSE? - Savings accounts pay interest on the money you deposit. - Savings accounts allow an unlimited amount of withdrawals each month. - Savings accounts may require you to maintain a minimum balance to avoid paying a fee. - Savings accounts are best used to store money for longer-term goals. {Ans: Savings accounts allow an unlimited amount of withdrawals each month.}Which of the following is NOT a common feature of a financial institution? - Access to investment products - Paper checks - Access to ATMS - Direct deposit {Ans: Access to investment products}A mutual fund is _________. {Ans: A type of investment that invests in a mix of different types of investments.}A stock is ________. {Ans: A share of ownership in a company.}Why is it important to reconcile your bank statements? {Ans: To avoid spending more