Checking and Banking Quiz

Where does the money for a purchase made with a debit card and selected as 'credit' come from?

• Your credit card company covers the cost

• It is deducted directly from your checking account

• Your credit card company provides you with a cash advance to cover the cost

• It is deducted from your credit card account

In which situation would a person-to-person payment be best used?

• To give a donation to someone soliciting contributions outside the grocery store

• To repay your uncle who covered the cost of your first semester textbooks

• To buy some school supplies and baseball equipment while shopping online

• To give a tip to the waitress at a diner

What recommendation do you have for Tammy, who needs to make a cash payment to the International Club advisor by the 3rd of every month?

• Sign up for direct deposit with her employer so that the money is already in her account the morning of the 1st

• 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

• 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

• 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

Jocelyn receives a text alert that her account has dropped below $100 after a series of $20 ATM withdrawals. What should she do?

• Wait until her monthly statement arrives so she can check to see if those withdrawals are still there

• Wait a week, as it is fairly common for the bank to catch mistakes like this

• Check her wallet to be sure her debit card has not been stolen. If she still has it, then she should not worry

• Contact her bank immediately as it appears that her account may have been hacked

Which of the following is NOT a way to access money in your checking account?

• Take out cash using your debit card at an ATM machine

• Use your debit card to pay for groceries at a Point-of-Sale (POS) terminal

• Write a check to pay the rent on your apartment

• Swipe a prepaid card to pay for your fast food purchase

Which payment option makes the most sense for Devon, who lives in a large apartment complex and has to pay rent to an office 45-minutes away?

• Hand-deliver cash

• Set up a text alert reminder to write and mail a check by the 28th of the previous month

• Ask his employer to set up direct deposit

• Use online auto bill pay

Which transaction 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

What is the most convenient feature of using online and mobile banking?

• Once you set up online banking, your bank will waive overdraft, ATM, and monthly fees

• By signing up for online banking, you will activate the FDIC insurance on your account

• Using online banking, you can request transfers, bill pay, automatic savings, and other features without visiting the bank branch

• You can shop online only if you've set up online banking

Which action is considered a best practice for check writing?

• Using a pencil so that you can quickly erase any errors without having to throw any checks away

• Recording all of your transactions in a check register

• Leaving the 'to' field blank until the very last minute, so that no one else can steal the check

• Writing quite sloppily in each field so that no one else can forge your handwriting

What is likely to be the outcome resulting from using a debit card for multiple transactions when there are insufficient funds in the account and overdraft protection is not enabled?

• Your account would be closed

• You will likely be charged an overdraft fee for EACH transaction and also will need to repay the bank for the amount overdrawn

• Because you requested overdraft protection, the bank will not allow you to overdraw your account, so your debit card will be denied in these instances

• The bank will provide you five days to add funds to your account to cover the overdraft and no fees will be assessed