Pre Test Fin Lit

A store and a bank would both charge fees for _____.

• failure to maintain a minimum balance

• paying a bill online

• conducting transactions with a teller

• bouncing a check

What does it mean if a check was skipped on a bank statement?

• The check may not have been cashed or deposited yet.

• The check was written for more money than was available in the account.

• The account holder wasted money by not using a check.

• The bank will charge a fee for the skipped check.

Why should "for deposit only" be written on a check along with the bank account number when it is endorsed?

• It saves time at the bank if it is already written on the check.

• Banks require that information be written on checks.

• If the check is lost, nobody else can cash it or do anything with it.

• It is a good reminder that the check is for deposit, not for cashing.

An overdraft fee is a fee for _____.

• writing more than 5 checks a month

• using a debit card at another bank's ATM

• withdrawing more money from an account than is actually there

• using a debit card as a credit card for a purchase

Jason started last week with $900 in his checking account. During the week, he wrote the checks below (See Picture).

Evaluate Jason's check register.

• Jason did a good job; everything is correct.

• The final balance is wrong; Jason did not add everything correctly.

• Jason should have written debit instead of deposit for the transaction type.

• Jason entered the amount for his paycheck in the wrong column.

Stephanie just opened a checking account and is learning how to record checks in a check register. She writes the following check and records it in her register (See Picture).

What did Stephanie do wrong?

• She switched the columns for the date and check number.

• She recorded the cost of the haircut in the wrong column.

• She recorded the description in the wrong row.

• She added the cost of the haircut to her balance.

Adam is using an ATM to make a withdrawal. The ATM is affiliated with a different bank than the bank where Adam has his checking and savings accounts. How many fees will Adam most likely have to pay for using the ATM?

• two fees, one to his bank and one to the bank who runs the ATM.

• one fee, to his own bank.

• one fee, to the bank who runs the ATM.

• no fees, using an ATM is usually free.

A bank is a financial institution where you can shop

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A checking account is a good way to protect your money.

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When filling out a check, you can leave blank spaces.

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