Chp. 4 Banking Flashcard

Front

Which of the following topics should be considered when shopping for a checking account? restrictions and penalties, fees and charges, interest rates, all of the above

Back

all of the above

Front

According to this deposit slip, Mary is depositing $_____ into her account and receiving $_____ cash back.

Back

$130; $20

Front

Which of the following items does not appear on a regular check?
balance of the account, amount of check written in words, name of the payee, checking account number

Back

balance of the account

Front

Which best describes the difference between a checking statement and a checking agreement? Options: A statement shows you the terms of the account, such as fees and minimum requirements, and an agreement shows you all of the deposits and withdrawals from your account, A statement can be downloaded from your online banking account, while an agreement must be obtained in person at a bank branch, A statement shows you all of the deposits and withdrawals from your account, and an agreement shows you the terms of the account, such as fees and minimum requirements, A statement must be obtained in person at a bank branch, while an agreement can be downloaded from your online banking account

Back

A statement shows you all of the deposits and withdrawals from your account, and an agreement shows you the terms of the account, such as fees and minimum requirements.

Front

A service charge or fee on your bank statement will result in: more outstanding checks, earning more interest, a higher balance, a lower balance

Back

a lower balance

Front

Digital wallets, EFT and P2P payments such as Apple Pay and CashApp, have made the use of __________ less necessary.

Back

Physical cash

Front

Which of the following transactions will REDUCE your checking account balance immediately?
Options:
Writing your monthly rent check which you will mail tomorrow
Using your debit card to buy a new phone case online
Using your credit card to pay for a new tire
Depositing a check at a local bank branch

Back

Using your debit card to buy a new phone case online

Front

FDIC Insurance is...

Back

Protection for bank customers’ deposits up to $250,000, guaranteeing their money is still available if the bank goes out of business

Front

When signing up for a new checking account, you answer "Yes" to receive overdraft protection. On this day, you have $10 in your account and 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 resulting from these transactions?

Back

You will likely be charged an overdraft fee for one or more of the transactions and also will need to repay the bank for the amount overdrawn.

Front

How often do customers typically receive a bank statement for their checking account?

Back

Monthly