1
A P2P payment would be best used in which situation?
A. To give a donation to someone soliciting contributions outside the grocery store
B. To repay your uncle who covered the cost of your first semester textbooks
C. To buy some school supplies and baseball equipment while shopping online
D. To give a tip to the waitress at a diner
A. To repay your uncle who covered the cost of your first semester textbooks
Your friend just got a part-time job so she can afford to attend a school trip abroad later this year. She gets a paycheck on the first of every month and a payment is due to the club advisor on the third of every month with no exceptions. What recommendation do you have for her?
A. Sign up for direct deposit
B. Use her break on the 1st of each month to go to the check cashing business
C. Deposit the check on her mobile app and hopefully it clears in time
D. Sign up for overdraft protection and if the funds do not arrive in time just pay the overdraft fee
A. Sign up for direct deposit.
Which of the following is a good habit to protect your checking account information?
A. Carry the username and password for your online banking account in your purse or wallet in case you need it on the go
B. Create complex passwords that are a long combination of letters, numbers, and symbols
C. Use your account number as your online banking password so it is easy for you to remember but difficult for others to guess
D. Share login information with a few friends and family members so that trusted individuals can access your money in an emergency.
B. Create complex passwords that are a long combination of letters, numbers, and symbols.
Label all the parts of a check
Should include address, date, who is getting the money, how much money in numbers and words, what the check is for and a signature of the check writer
You live in a large apartment complex and your rent is due by the first of each month to "Richardson Rental Properties and Housing Options, LLC" which has its office 45-minutes away in downtown Houston. Which payment option makes the most sense if you are trying to be responsible and efficient with your time?
A. Hand-deliver cash
B. Set up a text alert reminder to write and mail a check by the 28th of the previous month
C. Ask your employer to set up direct deposit
D. Use online auto bill pay
D. Use online auto bill pay
How does a low balance mobile alert on your checking account work?
It will alert you when your balance falls below a certain amount, and you will know to stop spending until you can add additional funds.
You visit a local bank that is FDIC-insured to open a checking account. Assume that you can only ask the representative one question before you open your account what would it be?
A. What is the interest rate on the account
B. What is the schedule of fees for this account
C. What happens if my debit card gets stolen
D. Do I get cashback on all of my debit card purchases
Using a digital wallet payment such as Apple Pay or Samsung Pay is considered safe because
A. Only major stores that can afford anti-hacking software accept these payments
B. You do not need to hand your card to the cashier, so your personal information and account number remain private
C. Not very many people have smartphones capable of using that payment type
D. They include overdraft protection for free when you use this payment type
B. You do not need to hand your card to the cashier, so your personal information and account number remain private.
Which of the following transactions will REDUCE your checking account balance immediately?
A. Writing your monthly rent check which you will mail tomorrow
B. Using your debit card to pay for groceries at the supermarket
C. Using your credit card to pay for your school books
D. Depositing a check at a local bank branch
B. Using your debit card to pay for groceries at the supermarket
Each of the following is a way to access money in your checking account EXCEPT
A. Take out cash using your debit card at an ATM
B. Use your debit card to pay for groceries at a Point of Sale terminal
C. Write a check to pay the rent on your apartment
D. Swipe a prepaid card to pay for your fast food purchase
D. Swipe a prepaid card to pay for your fast food purchase
The largest source of fees for banks when it comes to checking accounts is?
Overdraft fees.
Which action below is considered a best practice for check writing?
A. Using a pencil so you can erase errors without having to throw checks away?
B. Recording all of your transactions in a check register
C. Leaving the "to" field blank until the very last minute so that no one else can steal the check
D. Writing sloppily so that no one else can forge your handwriting.
B. Recording all of your transactions in a check register.
Leia has a checking account at a credit union, but she loads cash onto and uses prepaid cards sometimes, too. What might be her reason?
A. She can use a prepaid card to shop online but cannot do the same with a debit card
B. She earns points, miles, and other perks by using a prepaid card that she doesn't with her debit card
C. She feels the prepaid card prevents her from overspending because she loads on a fixed dollar amount and there is no option to overdraw.
D. Credit unions charge fees every time she uses her debit card, whereas prepaid cards typically have no fees
C. She feels the prepaid card prevents her from overspending because she loads on a fixed dollar amount and there is no option to overdraw
Which best describes the difference between a checking statement and a checking agreement?
A. A statement shows you all of the deposits and withdrawals from your account, and an agreement shows you the terms of the account, such as fee structure and minimum requirements
B. An agreement shows you all of the deposits and withdrawals from your account, and a statement shows you the terms of the account, such as fee structure and minimum requirements
C. A statement can be downloaded from your online banking account, while an agreement must be obtained in person at a bank branch
D. An agreement can be downloaded from your online banking account, while a statement must be obtained in person at a bank branch
A. A statement shows you all of the deposits and withdrawals from your account, and an agreement shows you the terms of the account, such as fee structure and minimum requirements
Which is the most convenient feature of using online and mobile banking?
A. Once you set up online banking, your bank will waive overdraft, ATM, and monthly fees
B. By signing up for online banking, you will activate the FDIC insurance on your account
C. Using online banking, you can request transfers, bill pay, automatic savings, and other features without visiting the bank branch
D. You can shop online only if you've set up online banking
C. Using online banking, you can request transfers, bill pay, automatic savings, and other features without visiting the bank branch
You get a text alert from your bank that your account has dropped below $100 after a series of $20 withdrawals. You have not used your ATM in over a week so what should you do?
Contact your bank immediately as it appears that your account may have been hacked.
Why is it so important to have a checking account?
A. Without a checking account, you are unable to cash your paycheck or pay your taxes
B. A checking account facilitates the rest of financial life by making your money available when and where you need it while also keeping it safe.
C. Opening a checking account is the first step in building your credit history, which you will need in order to receive loans, scholarships, and grants for college
B. A checking account facilitates the rest of financial life by making your money available when and where you need it while also keeping it safe
What kind of transaction may not appear on your account right away?
A check
How are credit unions and banks different?
A. Typically, deposits at a bank are insured, but deposits at a credit union are not
B. Banks charge overdraft fees, but credit unions do not
C. Banks are owned by shareholders while credit unions are owned by members
D. Banks allow customers to do online banking while credit unions are too small to provide these services
C. Banks are owned by shareholders while credit unions are owned by members
When signing up for a new checking account you answer "Yes" to receive overdraft protection. On this day you have $10 in your account. You go out and use your debit card to buy lunch for $12, a movie ticket for $12 and dinner for $15. What is likely the result from these transactions?
You are at the checkout counter at the local supermarket, use your debit card to pay for your groceries, and select "credit" when the cashier asks "Credit or Debit?" Where does the money for this purchase come from?
It is deducted directly from your checking account
You find three receipts from your activities today: (1)ATM withdrawal of $60 plus $3 out of network ATM fee, (2) Debit card used for grocery bill of $34 plus cash back of $20, and (3) ATM deposit of $90 from birthday checks. What is your current balance if you started the day with $300 in your account?
$273
Cam is moving from her childhood home in Scranton, PA to an apartment with her best friend in Los Angeles. She plans to stay 3-6 months to test whether she likes living on the West Coast, and then she may move again. What is the best option for Cam when opening a checking account?
Open an account at a large national bank with a lot of branch locations.
While opening your checking account, the bank representative seems very interested in getting you to sign up for overdraft protection. What might explain his motivation?
He may receive a sales commission if you sign up because banks generate income by charging fees such as overdraft.
When signing up for a new checking account you answer "No" to receive overdraft protection. On this day, you have $10 in your account. You go out and use your debit card to buy lunch for $12, a movie ticket for $12, and dinner for $15. What is likely to be the outcome from these transactions?
Because you turned down overdraft protection, the bank will not allow you to overdraw your account so your card will be denied in these 3 instances.