Show:
Checking Accounts
p2p and digital
Scenario
cards and checks
fees
100

Which of the following transactions will REDUCE your checking account balance immediately?

  1. Writing your monthly rent check which you will mail tomorrow
  2. Using your debit card to pay for groceries at the supermarket
  3. Using your credit card to pay for your school books
  4. Depositing a check at a local bank branch

2. Using your debit card to pay for groceries at the supermarket

100
  1. A person-to-person payment would best be used in which of these situations?
  1. To give a donation to someone soliciting contributions outside the grocery store
  2. To repay your uncle who covered the cost of your first semester textbooks
  3. To buy some school supplies and baseball equipment while shopping online
  4. To give a tip to the waitress at a diner
  • To repay your uncle who covered the cost of your first semester textbooks
100
  1. Devon lives in a large apartment complex, and his 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 Devon is trying to be responsible and efficient with his time?
  1. Hand-deliver cash
  2. Set up a text alert reminder to write and mail a check by the 28th of the previous month
  3. Ask his employer to set up direct deposit
  4. Use online auto bill pay
  • Use online auto bill pay
100
  1. 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?
  1. She can use a prepaid card to shop online but cannot do the same with a debit card
  2. She earns points, miles, and other perks by using a prepaid card that she doesn’t with her debit card
  3. She feels the prepaid card prevents her from overspending because she loads on a fixed dollar amount and there is no option to overdraw
  4. Credit unions charge fees every time she uses her debit card, whereas prepaid cards typically have no fees
  • She feels the prepaid card prevents her from overspending because she loads on a fixed dollar amount and there is no option to overdraw
100
  1. Why is it so important to have a checking account?
  1. Without a checking account, you are unable to cash your paycheck or pay your taxes
  2. 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
  3. Opening a checking account is the only way to gain access to a savings account, which is essential if you want to make money by investing
  4. 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
  • 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
200

A Checking account allows you to do which of the following?

1. Take out student loans

2. Pay bills, deposit/withdraw money, and write checks

3. Invest in the stock market

4. Open a savings account

2. Pay bills, deposit/withdraw money, and write checks

200
  1. Using a digital wallet payment such as Apple Pay or Samsung Pay is considered safe because...
  1. Only major stores that can afford anti-hacking software accept these payments types
  2. You do not need to hand your card to the cashier, so your personal information and account number remain private
  3. Not very many people have smartphones capable of using that payment type
  4. They include overdraft protection for free when you use this payment type
  • You do not need to hand your card to the cashier, so your personal information and account number remain private
200
  1. Your friend Tammy just got a part-time job so she can afford to attend a school trip abroad later this school year. Tammy gets a paycheck on the 1st of every month, and a cash payment is due to the International Club advisor by the 3rd of every month with no exceptions. More than one late payment results in being removed from the trip. What recommendation do you have for Tammy?
  1. Sign up for direct deposit with her employer so that the money is already in her account the morning of the 1st
  2. Use her 15-minute break during work on the 1st of each month to run to the check cashing business; hopefully she doesn’t get delayed by long lines and return to work late, which will anger her boss
  3. Deposit the check through her mobile app on the 1st of the month and do a cash withdrawal from the ATM each month on the 2nd; hopefully the check clears in time to avoid fees
  4. Sign up for overdraft protection, withdraw the money from an ATM regardless of whether the funds are there in time, and just pay the $35 overdraft fee
  • Sign up for direct deposit with her employer so that the money is already in her account the morning of the 1st
200
  1. Which of the following transactions may NOT be reflected on your account balance if you go online to check your balances?
  1. ATM cash withdrawal from yesterday
  2. Check that you mailed to your cousin for his birthday today
  3. Automatic payment for your car loan paid two days ago
  4. Debit card transaction from purchasing snacks at a local convenience store today
  • Check that you mailed to your cousin for his birthday today
200
  1. Which statement about check cashing businesses is TRUE?
  1. They are FDIC insured for deposits up to $250,000
  2. They allow customers to get access to their cash quickly with a fee
  3. They only charge fees if you are not a member
  4. They save customers time by only existing online and through mobile devices
  • They allow customers to get access to their cash quickly with a fee
300

Jocelyn gets a text alert from the bank that her account has dropped below $100 after a series of $20 ATM withdrawals. She has not used her ATM in over a week and wonders what she should do. What would you recommend?

  1. Wait until her monthly statement arrives so she can check to see if those withdrawals are still there
  2. Wait a week, as it is fairly common for the bank to catch mistakes like this
  3. Check her wallet to be sure her debit card has not been stolen. If she still has it, then she should not worry
  4. Contact her bank immediately as it appears that her account may have been hacked
  • Contact her bank immediately as it appears that her account may have been hacked
300
  1. Which of the following is a good habit to protect your checking account information?
  1. Carry the username and password for your online banking account in your purse or wallet in case you need it on-the-go
  2. Create complex passwords that are a long combination of letters, numbers, and symbols
  3. Use your account number as your online banking password so it is easy for you to remember but difficult for others to guess
  4. Share login information with a few friends and family members so that trusted individuals can access your money in an emergency
  • Create complex passwords that are a long combination of letters, numbers, and symbols
300
  1. 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?
  1. $273
  2. $333
  3. $83
  4. $300, because banks don't process any same-day transactions
  • $273
300
  1. Each of the following is a way to access money in your checking account EXCEPT...
  1. Take out cash using your debit card at an ATM machine
  2. Use your debit card to pay for groceries at a Point-of-Sale (POS) terminal
  3. Write a check to pay the rent on your apartment
  4. Swipe a prepaid card to pay for your fast food purchase
  • Swipe a prepaid card to pay for your fast food purchase
300
  1. The largest source of fees for banks when it comes to checking accounts is...
  1. Overdraft fees
  2. Wire transfer fees
  3. Check printing fees
  4. Interest expense
  • Overdraft fees
400
  1. How are credit unions and banks different?
  1. Typically, deposits at a bank are insured, but deposits at a credit union are not
  2. Banks charge overdraft fees, but credit unions do not
  3. Banks are owned by shareholders, while credit unions are owned by members
  4. Banks allow customers to do online banking, while credit unions are too small to provide that service
  • Banks are owned by shareholders, while credit unions are owned by members
400

  1. How does a low-balance mobile alert on your checking account work?
  1. 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
  2. It will make it impossible to overdraw your account
  3. When triggered it will automatically transfer money from your savings account so you don’t overdraw
  4. It will freeze your account so that no one can make any withdrawals for 24-hours
  • 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
400
  1. You visit a local bank that is FDIC-insured to open a checking account. Assume that you can only ask the bank representative one question before you open your account. What would it be?
  1. What is the interest rate on the account?
  2. What is your schedule of fees for this account?
  3. What happens if my debit card is stolen?
  4. Do I get cashback on all of my debit card purchases?
  • What is your schedule of fees for this account?
400
  1. Which action below is considered a best-practice for check writing?
  1. Using a pencil so that you can quickly erase any errors without having to throw any checks away
  2. Recording all of your transactions in a check register
  3. Leaving the “to” field blank until the very last minute, so that no one else can steal the check
  4. Writing quite sloppily in each field so that no one else can forge your handwriting
  • Recording all of your transactions in a check register
400
  1. 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 to be the outcome resulting from these transactions?
  1. Your account would be closed
  2. You will likely be charged an overdraft fee for EACH transaction and also will need to repay the bank for the amount overdrawn ($29)
  3. Because you requested overdraft protection, the bank will not allow you to overdraw your account, so your debit card will be denied in these 3 instances
  4. The bank will provide you five days to add funds to your account to cover the overdraft and no fees will be assessed
  • You will likely be charged an overdraft fee for EACH transaction and also will need to repay the bank for the amount overdrawn ($29)
500
  1. Which best describes the difference between a checking statement and a checking agreement?
  1. 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
  2. A statement shows you the terms of the account, such as fee structure and minimum requirements, and an agreement shows you all of the deposits and withdrawals from your account
  3. A statement can be downloaded from your online banking account, while an agreement must be obtained in person at a bank branch
  4. A statement must be obtained in person at a bank branch, while an agreement can be downloaded from your online banking account
  • 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
500
  1. Which of these is the most convenient feature of using online and mobile banking?
  1. Once you set up online banking, your bank will waive overdraft, ATM, and monthly fees
  2. By signing up for online banking, you will activate the FDIC insurance on your account
  3. Using online banking, you can request transfers, bill pay, automatic savings, and other features without visiting the bank branch
  4. You can shop online only if you've set up online banking
  • Using online banking, you can request transfers, bill pay, automatic savings, and other features without visiting the bank branch
500
  1. 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 resulting from these transactions?
  1. Your account will be closed
  2. You will likely be charged an overdraft fee for EACH transaction and need to repay the bank the funds overdrawn ($29)
  3. 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
  4. The bank will provide you with five days to add funds to your account to cover the overdraft but will not charge you any fees.
  • 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
500
  1. 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. Which of these is the BEST option for Cam when opening a checking account?
  1. Sign up for whatever bank is offering the best promotion, such as a $50 bonus for new account holders
  2. Open an account at a large national bank with a lot of branch locations
  3. Join a local credit union in CA with no monthly fees and low overdraft fees
  4. Keep the joint savings account she shares with her dad and just use that instead of opening a separate checking account
  • Open an account at a large national bank with a lot of branch locations
500
  1. 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?
  1. He wants to minimize the fees you might pay to the bank
  2. He is required by law to sign you up for overdraft protection
  3. He wants to protect your credit score
  4. Banks generate income by charging fees such as overdraft
  • Banks generate income by charging fees such as overdraft