Wise Financial Literacy Test - Banking Practice Quiz

A person wrote a check for $800 but only had a balance of $700 in their checking account. The most likely reason the check did not bounce is because he/she has

• A debit card from the bank

• A certificate of deposit at the bank

• Excellent credit

• Overdraft Protection

To control his spending, a man withdraws $20 from his checking account three times a week using the ATM at his bank. Therefore, this man should expect to pay:

• a flat service fee for withdrawals, since multiple transaction s were made within one week

• a fee based on the amount of money withdrawn

• a fee based on his banks's rate of interest

• no fee for the withdrawals since they all took place at his bank

Banks play an important role in the United States economy by:

• making loans to businesses

• insuring depositors against loss of personal property

• advising people when to retire

• preventing inflation

You've written a check for your power bill and realize you've lost it before even getting it in the mail; if you place a stop payment on the check, you can expect your bank to:

• process and pay the check if and when it comes through the bank

• close your checking account

• charge a minimum fee for the stop payment

• ask you to open another account

When you use your debit card to make a purchase, when does the money come out of your account?

• immediately

• 10 days

• 2 weeks

• 15 days

You should never write a check payable to "cash" because:

• it is no good

• the bank won't accept it

• anyone can cash the check

• automatically voided

Why should you never sign a blank check?

• it is no good

• handwriting won't match

• automatically voided

• anyone can fill out the check for any payee and for any amount

Why must you show identification now when you open a bank account?

• every customer is not known personally

• you are new to the community

• now required by law

• will not loan you money without identification

CD's (certificates of deposit) do not require a minimum deposit

• true

• false