Unit 1 Test - Banking

When swiping your debit card at a store where does the money come from?

• It will be deducted from your checking account

• You will get a cash advance from your credit card to cover the cost

• It will be deducted from your Venmo balance.

• It is deducted from your credit card account

A person-to-person payment would best be used in which situation?

• 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 a new homecoming dress online

• To pay your Uber driver for the ride home

Tammy needs to pay for a school trip by the 3rd of each month. What should she do to ensure timely payment?

• 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 gets a bank alert that her account is below $50. She hasn't used her ATM in a week. What should she do?

• Check her wallet to ensure her debit card is not stolen. If she has it, don't worry

• Wait a week for the bank to correct any mistakes

• Contact her bank immediately to check for fraud

• Wait for her monthly statement to verify the withdrawals

Each of the following is a way to access money in your checking account EXCEPT...

• 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

Devon's rent is due by the first of each month. Which payment option is most efficient for him?

• 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 recurring bill pay

Which transaction will reduce your checking account balance immediately?

• Depositing a check using your mobile app.

• Using your debit card to pay for new fishing gear

• Writing your monthly rent check which you will mail tomorrow

• Using your credit card to pay for groceries at the supermarket

Which is the most convenient feature of online and mobile banking?

• Online banking will reduce the monthly fees of banking

• Your bank account will be FDIC insured

• You can only use an app such as Apple Pay if you have online banking

• You can request transfers, bill pay, automatic savings, and other features without visiting the bank branch

You have $8 in your account and make purchases totaling $38. What happens if you have overdraft protection?

• Your account would be closed

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

• 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

• Your account is linked to your savings account and the bank will transfer money to cover the costs while you also pay a transfer fee.

You started the day with $400. You withdrew $60 with a $3 fee, spent $34 on groceries with $20 cash back, and deposited $90. What is your current balance?

• $93

• $433

• $373

• $300, because banks don't process any same-day transactions