Banking 101

A pawnshop offers loans to people starting their own business.

• True

• False

Opening a checking account requires completing a signature card.

• True

• False

A blank endorsement allows anyone to cash a check.

• True

• False

A "smart card" stores a person's bank balance right on the plastic card.

• True

• False

An outstanding check refers to one written on an account with a very low balance.

• True

• False

The highest loan rates usually occur when borrowing from a:

• Bank

• credit-card company

• pawnshop

• credit union

Obtaining cash from an ATM is similar to:

• writing a check

• making a deposit

• opening a new account

• earning interest on your account

A _____________ is used to add funds to a bank account

• check

• deposit slip

• signature card

• withdrawal slip

A service charge on your bank statement will result in:

• a higher balance

• a lower balance

• earning more interest

• more outstanding checks

A recent bank statement for Tracy Gray revealed various service charges and fees of over $10.00. How might Tracy reduce her costs for banking fees?