PF: Banking

Your debit card is stolen, and you report it to your bank within two business days. How much money can you lose at most?

• $25

• $50

• $150

• $500

Karen doesn’t like driving to the local bank branch, but doesn’t think that it is secure to do financial transactions on her phone. What is the best banking option for her?

• She should use traditional banking for everyday transactions and questions.

• She should use online banking services and never go to her local bank branch.

• She should use online banking and only use her local bank when necessary.

• She should use mobile banking to avoid the security risks of online banking.

What is online bill payment?

• a service that allows consumers to set up recurring payments

• a bill-organizing service that banks offer in traditional banking

• a service that provides consumers with credit for bill payments

• a service that pays bills without consumer verification

Under the Electronic Fund Transfer Act, which two banking practices are part of the consumer’s responsibility?

• disposing of credit reports to maintain security

• notifying the bank of lost credit or debit cards

• testing networks to ensure there is appropriate network security

• knowing rights and responsibilities relating to money transfers

Choose the best answer:

What makes mobile banking somewhat less secure than regular online banking?

• Mobile banking apps are inherently less secure than banking programs on a computer.

• Mobile devices can be lost or stolen more easily than a computer, such as a laptop.

• Confidential financial information entered into a mobile device may be visible to people in the vicinity.

• Unlike with computers, mobile banking apps store personal financial information and share it with other apps.

Identify which documents Max needs to open a bank account.

Max wants to open a basic checking account at his local bank. He needs to bring his _________________ and ________________, along with a $50 deposit, to open the account.

• high school diploma; car insurance

• employment certificate; student ID card

• mom; dad

• Social Security card; driver’s license

Harry wants to save money in a bank account. He decides to open a _______________ account with a five-year maturity date because it offers a _________________ than a savings account does.

• CD; higher interest rate

• checking; more ATM withdrawals

• money market; a lower maturity period

Choose all that apply.

Identify the benefits of traditional banking:

• Consumers can get paperless

  bank statements instantly.

• Consumers can seek

  specialized financial

  advice from bank employees.

• Consumers can use the

  bank’s notary services.

• Consumers have the convenience

  of electronic deposits and

  money transfers.

Choose all that apply.

Identify the benefits of online banking:

• Consumers can seek

  specialized financial

  advice from bank employees.

• Consumers can get paperless

  bank statements instantly.

• Consumers have the convenience

  of electronic deposits and

  money transfers.

• Consumers can use the

  bank’s notary services.

Match the account type with its description.

money market deposit account

• earns interest and allows unlimited ATM use

• pays higher interest than a savings account

• restricts access to funds through withdrawals

• does not earn interest and has a low minimum

  balance requirement