7. USAEO Financial Literacy

Banking Basics — Quiz

Test your understanding of banking basics with 5 practice questions.

Practice Questions

Question 1

Which of the following best describes the primary difference between a checking account and a savings account at a typical commercial bank?

Question 2

Suppose a bank offers a savings account with an annual interest rate of 3%, compounded monthly. If you deposit $1,000 into this account and make no withdrawals, what will be the balance after 2 years?

Question 3

Which of the following fees is most commonly associated with checking accounts but not typically with savings accounts?

Question 4

A customer writes a check for $500 from their checking account, but they only have $400 in the account. The bank pays the check and charges a $35 overdraft fee. What is the new balance in the account?

Question 5

Which of the following best explains why banks typically pay lower interest rates on checking accounts than on savings accounts?