Cwmc Module 2: Banking Competency Test
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This quiz is part of LFE Institute’s CWMC (Certified Workplace Money Coaching) course. It will test your proficiency in the Banking Module (Module 2) of the program. The questions are all multiple choice, and are designed to be a review of this Module. Let LFE know when you’ve successfully completed this test and are ready to begin the next Module. Correct answers required for passing grade: 12/14
- 1.Banks today are in business to:
- A.
Help their customers
- B.
Make a profit for their shareholders
- C.
Help stimulate the economy
- D.
Provide a safe place for consumers to put their money
- 2.Which resource will generally charge the lowest fees overall for a checking account?
- A.
“Brick & Mortar” Bank
- B.
Online bank
- C.
Credit Union
- D.
Savings & Loan
- 3.Savings in a customer's savings account are guaranteed in an FDIC-approved financial institution up to:
- A.
$100,000
- B.
$150,000
- C.
$200,000
- D.
$250,000
- 4.Banks offer “free” Overdraft Protection today, but annualized interest rates to use this feature can go as high as:
- A.
4%
- B.
40%
- C.
400%
- D.
4000%
- 5.Where will consumers generally NOT find the best terms on loans?
- A.
National banks
- B.
Local community banks
- C.
Credit Unions
- D.
Online banks
- 6.When will having an account at a national bank be beneficial? (check all that apply)
- A.
When traveling and trying to access an ATM
- B.
During a disaster when my local branch may be inaccessible
- C.
When low monthly service fees are a priority
- D.
When personally getting to know a banker is important
- 7.Monitoring activity on my bank account online daily will help: (check all that apply)
- A.
Avoid overdraft charges
- B.
Find errors sooner
- C.
Provide peace of mind
- D.
Let me know how much money is in the account
- 8.What is the easiest and safest solution today for employees who don’t trust banks or cannot get a checking account?
- A.
Just use cash
- B.
Get money orders to pay bills
- C.
Use a payroll debit card
- D.
Use credit cards
- 9.What is the best resource to compare bank fees?
- A.
Ask the bank managers
- B.
Www.Bankrate.com
- C.
Contact the FDIC
- D.
Www.TheStreet.com
- E.
Ask another bank what they’ve heard
- 10.Which of the following services are designed to help a bank's customers?
- A.
Clearing the largest check first
- B.
Holding deposits to ensure the funds are available
- C.
Clearing checks via “first pay” so that the priority checks clear the bank first
- D.
Charging up to $48 when ordering two boxes of checks so that customers only order one free box at a time
- E.
None of the above are really designed to benefit the bank’s customers
- 11.The worst thing that can happen if my local bank fails is:
- A.
I lose all of my money
- B.
I lose everything that was in my safety deposit box
- C.
All of my loans are due immediately
- D.
I cannot get access to my cash temporarily
- 12.Helping a teenager open a bank account is a good idea if: (check all that apply)
- A.
The teen is taught how to go online to check the balance and manage the account
- B.
He or she understands the charges for using overdraft protection
- C.
ATM charges are explained
- D.
The bank has a low-cost option for teenagers
- E.
It’s never a good idea until the child is 18
- 13.Who can access the money in your bank account?
- A.
Your spouse
- B.
Your parents
- C.
Your children
- D.
Your employer
- E.
Anyone who is an authorized signer on the account
- 14.Besides FDIC guarantees, which of the following laws protect bank customers? (check all that apply)
- A.
Truth in Lending (see http://en.wikipedia.org/wiki/Truth_in_Lending_Act)
- B.
FCRA (Fair Credit Reporting Act) (see http://en.wikipedia.org/wiki/Fair_Credit_Reporting_Act)
- C.
Dodd–Frank Wall Street Reform and Consumer Protection Act (see http://en.wikipedia.org/wiki/Dodd-Frank_Wall_Street_Reform_and_Consumer_Protection_Act)
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