Money Skills Chapter 10

Electronic funds transfer (EFT) refers to...

• The agency that insures deposits in banks.

• The movement of funds by electronic means..

• The secret code for your accounts.

• Using an ATM.

Paying by electronically transferring funds at the place of purchase called a(n)...

• automatic loan payment

• debit card

• direct deposit

• point-of-sale transaction

A PIN is a code that is concerned with the...

• amount in your account

• balance of your account

• flexibility of your account

• security of your account

At your request, banks can automatically preform all of the following services EXCEPT...

• debit card advances

• direct deposit

• loan payments

• transfers between accounts

You can deduct money from your bank account to make a purchase by use of a...

• charge card

• credit card

• debit card

• telephone card

All of the following will most likely happen if you write an overdraft EXCEPT...

• The unpaid check will be returned to the payee's bank.

• You and the payee will be charged substantial fee by your bank.

• The payee, if a business, will charge you a fee for a bounced check.

• You will be arrested for writing a bad check.

Writing a check is more secure than paying with cash because...

• a check is usable only by the payee.

• some bills cannot be paid with cash.

• you can keep a record of the transaction.

• you can void a check.

To receive favorable banking term or avoid a penalty, you may need to..

• apply for a credit card from the bank.

• maintain a minimum balance.

• make all transaction in person.

• use automatic funds transfers.

If you make a mistake writing a check, you should...

• bounce the check

• cancel the check

• reconcile the check

• void the check

In the event of a bank failure, what insurance protects you from losing you money?

• bank

• deposit

• savings

• interest