Checking Review

You are at the checkout counter at the local supermarket and use your debit card to pay for your groceries. Where does the money for this purchase come from?

• Your credit card company covers the cost

• It is deducted directly from your checking account

• Your credit card company provides you with a cash advance to cover the cost

• It is deducted from your credit card account

Which of the following is a way to access the money in your checking account?

• Taking out cash using your credit card at an ATM machine

• Using your debit card to pay for groceries at the checkout

• Depositing a paycheck at an ATM

• Receiving a person-to-person payment from your friend

Which of the following transactions will REDUCE your checking account balance immediately?

• Writing your monthly rent check which you will mail tomorrow

• Using your debit card to pay for groceries at the supermarket

• Using your credit card to pay for your school books

• Depositing a check at a local bank branch

FDIC Insurance is...

• Optional coverage consumers can purchase so that their bank deposits remain safe.

• Insurance bank branches can buy to protect their business against fraud and scams.

• Required if you want to do online or mobile banking.

• Protection for bank customers’ deposits up to $250,000, guaranteeing their money is still available if the bank goes out of business.

When signing up for a new checking account, you answer "Yes" to receive overdraft protection. On this day, you have $10 in your account and go out and use your debit card to buy lunch for $12, a movie ticket for $12 and dinner for $15. What is likely to be the outcome resulting from these transactions?

• Your account would be closed

• You will likely be charged an overdraft fee for one or more of the transactions and also will need to repay the bank for the amount overdrawn ($29)

• Since you requested overdraft protection, the bank will not allow you to overdraw your account so your debit card will be denied

• The bank will provide you five days to add funds to your account to cover the overdraft and no fees will be assessed

How often do customers typically receive a bank statement for their checking account?

• Daily

• Weekly

• Monthly

• Yearly

Which of the following transactions may be missing when you go online to review your checking account balance?

• ATM cash withdrawal from yesterday

• Check that you mailed to your cousin for his birthday today

• Automatic payment for your car loan paid two days ago

• Debit card transaction from purchasing snacks at a local convenience store today

The largest source of fees for banks when it comes to checking accounts is...

• Overdraft fees

• Wire transfer fees

• Check printing fees

• Interest expense

If you are trying to protect your checking account information, it is dangerous to…

• Carry the PIN number for your debit card with you in your purse, wallet, or backpack.

• Shred documents that have your account number on them.

• Check your ATM and debit card transactions on a frequent basis.

• Shop on secured websites when entering in your account information online.

What is the mathematical formula that you would use to describe the financial activity on a bank statement?

• Ending Balance = Previous Balance + Deposits + Withdrawals + Fees

• Ending Balance = Previous Balance - Deposits + Withdrawals - Fees

• Ending Balance = Previous Balance + Deposits - Withdrawals - Fees

• Ending Balance = Previous Balance - Deposits - Withdrawals + Fees