Understanding Checking Accounts Flashcard

Front

What is a checking account primarily used for?

Back

Making everyday transactions and payments

Tags

DOK Level 2: Skill/Concept

Front

Which of the following is a benefit of having a checking account? It allows you to earn high interest on your balance, It provides a safe place to store your money and easy access to it, It requires no fees or charges, It automatically invests your money in the stock market

Back

It provides a safe place to store your money and easy access to it

Tags

DOK Level 2: Skill/Concept

Front

What is the first step in opening a checking account?

Back

Choosing a bank or credit union

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DOK Level 2: Skill/Concept

Front

How can you make a purchase using a debit card?

Back

By swiping or inserting the card at a point of sale terminal.

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DOK Level 2: Skill/Concept

Front

What information is necessary to fill out a check?

Back

The date, recipient's name, amount, and your signature

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DOK Level 2: Skill/Concept

Front

What does it mean to endorse a check?

Back

To sign the back of the check to authorize its cashing or deposit.

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DOK Level 2: Skill/Concept

Front

Why might someone choose to pay by check instead of cash?

Back

Checks can be used to track payments and provide a record

Tags

DOK Level 2: Skill/Concept

Front

What should you do if you realize you don't have enough money in your checking account to cover a check you've written?

Back

Contact the bank to discuss options or deposit additional funds immediately

Tags

DOK Level 2: Skill/Concept

Front

Which of the following is NOT a step in using an ATM card?
- Entering your Personal Identification Number (PIN)
- Selecting the type of transaction you want to perform
- Writing a check to the ATM
- Inserting the card into the ATM machine

Back

Writing a check to the ATM

Tags

DOK Level 2: Skill/Concept

Front

What is one reason someone might prefer using an ATM card over writing a check?

Back

ATM cards allow for immediate withdrawal of cash

Tags

DOK Level 2: Skill/Concept