Unit 3 Review

TWO benefits of having a checking account are safety and convenience. Which of the following statements is FALSE?

• if you have a checking account, you won't need so much cash on you

• With a checking account, you have several options for how to pay bills

• you can cash checks for free when you cash your paycheck at your bank

• in order to shop online, you must use a debit card

Which of the following people would be LEAST likely to benefit from opening a checking account?

• a teenager whose part-time job pays $100/week

• a young child who receives a $5 allowance each month

• a senior citizen who is retired and whose only income is Social Security

• a successful business person who already has a savings account

Wanda's bank is FDIC insured. What is the benefit to Wanda?

• if she makes a purchase and the item breaks, she'll get a full refund

• she can use her bank card at any bank, nationwide, without a fee

• if Wanda's bank goes out of business, she will receive all her money back

• she will receive a debit card and a checkbook she can use to make purchases

Which statement about debit and credit cards is TRUE?

• both cards draw money directly from your checking account

• debit cards REMOVE money from your checking account while credit cards ADD money

• debit cards, credit cards, and ATM cards all mean the same thing

• both cards allow you to make purchases online and at major stores

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

• writing your monthly rent check which you will mail tomorrow

• using your debit card to pay for groceries at the supermarket

• using your credit card to pay for your school books

• depositing a check at a local bank branch

Which of the following is TRUE regarding person-to-person (P2P) payments?

• to use a P2P payment, both people must use the same bank

• paying a cashier using your debit card is an example of P2P payment

• P2P payments typically have large fees attached

• P2P payments are usually conducted using a smartphone app vs. a computer

What is the largest and most common checking account fee?

• check printing charges

• monthly service charge

• ATM fees

• overdraft fees

Which of the following is TRUE regarding overdraft protection?

• you will never have to worry about how much money is in your account

• you will pay a fee, but you don't have to pay back what you overdrafted

• it is handy if you have an emergency and don't have the funds right now

• you will pay a fee even if you don't have overdraft protection

Which item would you expect to find on your monthly bank statement?

• the cost of out-of-network ATMs

• the terms and agreement of your account

• a list of the specific deposits you have made recently

• the per transaction cost of using your debit card in foreign countries

What type of fee would be HARDEST to eliminate or lower?

• the monthly fee

• the out-of-network ATM fees

• the overdraft fees

• the bounced check fees