Chapter 3 Test

True or false? To use digital payment services such as bank to bank money transfers like Zelle™ or other digital services like Apple Wallet™, CashApp, or Paypal™, you must have a bank account first.

• True

• False

If the total purchases you made with your debit card amount to more than your current balance, your account will ______________. You will then be ____________ a fee for this.

• remain the same, given

• overdraw, charged

True or false? You can overdraw on a prepaid debit card.

• True

• False

True or false? Interest bearing checking accounts are a good option for people who keep very little money in their accounts.

• True

• False

Using the register below, calculate the final balance after the Spotify transaction.

• $1030.77

• $1030.80

• $935.88

• $889.64

Using the register below, calculate the final balance after the overdraft fee.

• -$49.24

• -$48.87

• -$36.29

• -$48.37

What is a checking account?

• an account where your creditor extends a temporary loan to you and charges you interest.

• an account at a bank against which payments can be made based on available funds that are deposited by or on behalf of the account holder.

• a card that allows the user to withdraw money from a bank account to obtain cash or make a purchase.

• a book or document in which to record the money taken out or put into a checking account. Designed for recording checks, withdrawals, and deposits, it can be updated to fit other methods of banking and spending.

What does EFT stand for?

• Every Fund Transfers

• Electronic Funds Transfer

• Each Fund Transfers

• Electronic Fund Transaction

What is a debit card?

• a book or document in which to record the money taken out or put into a checking account. Designed for recording checks, withdrawals, and deposits, it can be updated to fit other methods of banking and spending.

• handwritten or computer-generated order specifying the amount of money to be paid and the name of the person or company who should receive the funds.

• a card that allows the user to withdraw money from a bank account to obtain cash or make a purchase.

• a machine that allows you to perform basic banking functions without the help of a teller.

What does it mean to be overdrawn?

• Being drawn more than necessary.

• Having a negative interest charge.

• Have a positive balance in a checking account.

• Having a negative balance in a checking account.