final 4 Flashcards
(30 cards)
One way money functions in society is that it helps people communicate a product’s
__________.
A. Attributes
B. Income
C. Market
D. Value
Value
Jocelyn gets a text alert from the bank that her account balance has dropped below
$100 after a series of $20 ATM withdrawals. She has not used her ATM in over a week
and wonders what she should do. What would you recommend?
A. Wait until your monthly statement arrives so you can check to see if those
withdrawals are still there.
B. Wait a week, as it is fairly common for the bank to catch mistakes like this.
C. Check your wallet to be sure your debit card has not been stolen. If you still
have it, then you should not worry.
D. Contact your bank immediately as it appears that your account may have been
hacked.
Contact your bank immediately as it appears that your account may have been
hacked.
A bank’s own personal check signed by the bank’s cashier is called a __________.
A. Money order
B. Cashier’s check
C. Traveler’s check
D. None of the above
B. Cashier’s check
What is the term used when a person asks their bank not to honor a specific check they
have written?
A. An overdraft protection
B. A stop-payment order
C. A cancellation
D. A limit order
B. A stop-payment order
Which TWO of the following statements are advantages of online banking?
A. Once you set up online banking, your bank will waive overdraft, ATM, and monthly
fees.
B. With online banking, you can view your daily transactions and balances, rather than
waiting for your monthly statement to arrive.
C. Using online banking, you can request transfers, pay bills, and automate your savings
without visiting the bank branch.
D. You can shop online only if your bank account has online banking features.
A. A & B
B. B & C
C. B & D
D. A & C
b&c
When signing up for a new checking account, you answer “Yes” to receive overdraft
protection. On this particular day, you have $10 in your account. You then go out and
use your debit card to buy lunch for $12, a movie ticket for $12, and dinner for $15.
What is likely to be the outcome in your account resulting from these transactions?
A. Your account would be closed.
B. You will likely be charged an overdraft fee for one or more of the transactions,
and also you will need to repay the bank for the amount overdrawn ($29).
C. Since you requested overdraft protection, the bank will not allow you to
overdraw your account and your debit card would be declined for all three
transactions.
D. The bank will provide you five days to add funds to your account to cover the
amount of the overdraft adan will not charge you any fees.
You will likely be charged an overdraft fee for one or more of the transactions,
and also you will need to repay the bank for the amount overdrawn ($29).
What is the largest source of fees for banks when it comes to checking accounts?
A. Overdraft fees
B. Wire transfer fees
C. Check printing fees
D. Interest expense
A. Overdraft fees
Mia is opening her first checking account, and she’s trying to decide whether she should
sign up for overdraft protection. Which friend’s advice is MOST accurate?
A. Jordan says, “With overdraft protection, you never have to worry about how
much money is in your account.”
B. Diego says, “Yes, you’ll have to pay a fee for each overdraft, but you DON’T
have to pay back the bank for the money you overdrew from the account.”
C. Frank says, “Overdraft protection may seem handy if you have an emergency
(like needing gas to get to work) but you might pay lots of overdraft fees if you
don’t keep track of your account closely.”
D. Alex says, “If you say ‘No’ to overdraft protection, and you TRY to withdraw
more than what’s in your account, the bank will contact you to see if you want
them to cover it.
Frank says, “Overdraft protection may seem handy if you have an emergency
(like needing gas to get to work) but you might pay lots of overdraft fees if you
don’t keep track of your account closely.”
Having the bank deduct a certain amount from your checking account each month to
pay a bill is called __________.
A. Automatic withdrawal
B. Overdrafting
C. Fees
D. Borrowing
A. Automatic withdrawal
Which of these is true of electronic banking?
A. Customers can only access their accounts during regular business hours.
B. Customers can perform transactions with the help of a teller during regular
business hours.
C. Customers with online banking no longer need to reconcile their accounts
each month.
D. Customers can access their account balance and perform transactions 24
hours a day
D. Customers can access their account balance and perform transactions 24
hours a day
Which of the following is a way to access the money in your checking account?
A. Taking out cash using your credit card at an ATM machine
B. Using your debit card to pay for groceries at the checkout register
C. Depositing a paycheck at an ATM
D. Receiving person-to-person payment from your friend at a restaurant
B. Using your debit card to pay for groceries at the checkout register
A person-to-person payment app could be used in each of hte following scenarios
EXCEPT….
A. Tina pays her neighbor $200 for breaking his window with a softball.
B. Rafael writes the whole monthly rent check to the landlord, and his
roommates each pay him back for their share of the rent.
C. Ahmed’s soccer coach pays the team’s registration fee for a big tournament,
and each player then owes him $35 for their share of the registration fee.
D. Mia pays Randy, the delivery driver from Cheezy Pizza Company, for a pizza
she orders for her Spanish study group meeting.
D. Mia pays Randy, the delivery driver from Cheezy Pizza Company, for a pizza
she orders for her Spanish study group meeting.
If you are trying to protect your checking account information, it is dangerous to….
A. Carry the PIN number for your debit card with you in your purse, wallet, or
backpack
B. Shred documents that have your account number on them
C. Check your ATM and debit card transactions frequently
D. Shop on secured websites with your debit card
A. Carry the PIN number for your debit card with you in your purse, wallet, or
backpack
If you are using a digital wallet at a store in the mall to pay for your purchase, you are
likely….
A. Sending a person-to-person payment to the cashier
B. Inserting your chipped credit card into the credit card reader at the register
C. Holding your phone close to the point-of-sale machine
D. Sending an online payment to the store from your computer once you get
home
C. Holding your phone close to the point-of-sale machine
When filling out a check, which of the following is written in the “Pay to the order of”
area?
A. The total check amount spelled out in words
B. The name of the banking institution cashing the check
C. The name of the person or business receiving the funds
D. The name of the banking institution currently holding the funds
C. The name of the person or business receiving the funds
What is the name of the book a person uses to keep a record of the checks they have
written and the deposits they have made?
A. Folder
B. Check register
C. Balance book
D. Safe deposit book
B. Check register
How often do customers typically receive a bank statement for their checking
account?
A. Daily
B. Weekly
C. Monthly
D. Annually
monthly
Which of the following transactions may be missing when you go online to review your
checking account balance?
A. ATM cash withdrawal from yesterday
B. Check that you mailed today to your cousin for his birthday
C. Automatic payment for your car loan paid two days ago
D. Debit card transaction from purchasing snacks at a local convenience store
today
Check that you mailed today to your cousin for his birthday
What is the mathematical formula that you would use to describe the financial activity
on a bank statement?
A. Ending Balance = Previous Balance + Deposits + Withdrawals + Fees
B. Ending Balance = Previous Balance - Deposits + Withdrawals - Fees
C. Ending Balance = Previous Balance + Deposits - Withdrawals - Fees
D. Ending Balance = Previous Balance - Deposits - Withdrawals - Fees
C. Ending Balance = Previous Balance + Deposits - Withdrawals - Fees
FIN.9-12.07.42600.FIN-FL-5.6 | DOK:
A debit card allows a person to do which of the following?
A. Pay for purchases directly from a checking or savings account
B. Build wealth
C. Borrow money for a short term
D. Spend more money than they have in a checking or savings account
A. Pay for purchases directly from a checking or savings accou
You are at the checkout counter at the local supermarket and use your debit card to
pay for your groceries. Where does the money for this purchase come from?
A. Your credit card company covers the cost.
B. It is deducted directly from your checking account.
C. Your credit card company provides you with a cash advance to cover the cost.
D. It is deducted from your credit card account.
B. It is deducted directly from your checking account
Which of the following transactions will REDUCE your checking account balance
immediately?
A. Writing your monthly rent check which you will mail tomorrow.
B. Using your debit card to pay for groceries at the supermarket.
C. Using your credit card to pay for your school books.
D. Depositing a check at the local bank branch.
B. Using your debit card to pay for groceries at the supermarket.
Interest that is paid on the principal plus any previously earned interest, assuming that
the interest is left in the account, is called ___________.
A. Simple interest
B. Compound interest
C. Express interest
D. Complex interest
B. Compound interest
If you deposit $300 in an account that pays 6% simple interest per year, what would
your account balance be at the end of the first year?
A. $300
B. $312
C. $318
D. $480
318
