Banking Unit Test Review

Which of the following is not an example of an EFT?

• ATM Withdrawal

• Payroll Direct Deposit

• Debit Card

• Personal Check

An on-line bill payment has what effect on the balance in your checking account:

• No effect

• Increases the balance

• Decreases the balance

• Depends on the amount

Joan wants to open a checking account and wonders if checking accounts pay interest. How would you answer her question?

• Checking accounts never pay interest

• Some types of checking accounts pay interest

• All checking accounts pay interest

• Checking accounts pay interest if the account balance does not fall below $300

Pat has a savings account and a car loan from a not-for-profit financial institution owned by its members. She is probably a member of what type of financial institution?

• Savings and Loan association

• Commercial Bank

• Credit Union

• Investment club

A person is depositing $20 in cash and a check for $50. On the checking account deposit slip, the person should

• indicate the amount of money that is currently in the checking account as well as in a savings account to cover the check.

• indicate what bank issued the check that is being deposited.

• include the reason that both cash and a check are being deposited.

• list the cash deposit separately from the check as well as the total of the deposit.

Scott just got an ATM card to use and must choose a PIN. How should he select a PIN that will give him maximum protection against anyone else being able to find out what the PIN is?

• Use his birth date as his personal identification number

• Use a random selection of letters and numbers

• Use his first initial and last name as his personal identification number

• Use the name of a friend, family member, or pet

The FDIC insures bank accounts up to a maximum of:

• $100,000

• $125,000

• $200,000

• $250,000

Patty is selling her car through a newspaper advertisement. When she finds a buyer, she wants a form of payment which is guaranteed to be good. Which form of payment should she avoid?

• Cashier’s check

• Certified check

• Cash

• A check

A blank endorsement on a check:

• Creates a check that can be cashed by anyone

• Cancels the check

• Has no effect on the check

• Restricts the use of the check

When a person is reconciling a checking account and notices that the balance in the checkbook does not match the balance on the statement from the bank, which action is it appropriate for the person to take first?

• Adjust the balance in the checkbook so it is the same as the bank's balance.

• Deposit sufficient funds to adjust the balance in the checkbook to match the bank's balance.

• Determine that checks already written have cleared.

• Notify the bank in writing to adjust the statement.