Quiz Week 1-Banking Budget Challenge

The three main types of banks (Large Traditional, Credit Union, Online or Online-Only) have many tradeoffs with respect to technology, convenience, personal experience, fees and savings rates. For this question, put aside all of the trade-offs and look only at the level of technology available to consumers. Rank the following from highest to lowest on the level of innovative and convenient technology available to consumers (i.e. mobile apps, website functionality, integration with accounting services and software)

• Credit Union, Online Bank, Large Traditional Bank

• Credit Union, Large Traditional Bank, Online Bank

• Online Bank, Credit Union, Large Traditional Bank

• Large Traditional Bank, Online Bank, Credit Union

If the interest rate on a savings account is 0.02%, approximately how much money do you need to keep in this account for 1 year to earn enough interest to cover a single $9.99 Below-Minimum-Balance Fee?

• $50

• $500

• $5,000

• $55,000

True or False: Banks are required to make electronically deposited funds available on the same day of the deposit

• True

• False

The fee the bank charges the depositor of a bad check is...

• A returned check fee

• Non-sufficient funds fee (NSF)

• Below minimum balance fee

• Service fee

What is the best way to pay a bank fee?

• Give cash to bank teller

• Use a Money Order.

• Use a Cashiers Check.

• Do Nothing. Banks immediately deduct fees from your account.

What is overdraft protection (ODP)?

• A cheap and easy way to always avoid overdrawing a bank account

• A service provided by the government that insures individuals bank deposits up to $250,000

• An insurance policy sold by banks to prevent others from withdrawing your money

• A service to automatically transfer available funds from a linked account to cover purchases, prevent returned checks and declined items when you don’t have enough money in your checking account at the time of the transaction.

The fee the bank charges the issuer of a bad check is...

• A returned check fee

• Non-sufficient funds fee (NSF)

• Below minimum balance fee

• Service fee

What type of accounts can be linked to a checking account for overdraft protection?

• 401k account and IRA account

• Savings account, 401k account, & frequent shopper account

• Savings account, credit card, or another checking account

• There are no linked accounts needed for overdraft protection

What happens if you do not have enough funds in your linked account to cover the overdraft?

• All answers are correct

• The bank issues a fee to the person or company that tried to deposit the bad check

• The bank issues you a fee for issuing a bad check

• The purchase, check, or transaction is declined

If you have ODP, it can help reduce the cost associated with bouncing a check. Is this True or False?

• True

• False