Financial Algebra Topic 2 - Checking and Linear Equations

What is the main disadvantage of using a check-cashing service?

• Fees are typically higher than at a bank

• You will not have access to your money right away

• They will place a hold on your money

• Check Cashers are hard to find

Answer explanation

Check cashers get you your money immediately, but charge fees to do so. It is typically free to deposit a check to your checking acount (phone app, ATM and in-person are ways to deposit a physical check)

Tags

CCSS.7.RP.A.3

You notice a charge on your credit card that you don't recognize. $274.45 at BJ's, but you don't recall ever setting foot in BJ's. What should you do? Select all possible.

• Drive to BJ's and demand an explanation

• Contact your bank and ask them to investigate the charge

• Never shop at BJ's again

• Set up text alerts to notify you of unusual charges

How much is the typical overdraft fee?

Tags

CCSS.7.EE.B.3

CCSS.7.NS.A.3

CCSS.7.RP.A.3

Checking account interest rates (the amount of money you earn from interest paid by the bank) are typically very _______

• Low

• High

Answer explanation

Average Checking account interest rates are around 0.04%. You would earn 40 cents on a $1000 balance in one year. Not a great way to grow wealth!

What kind of alerts can you set up on your checking account? Select all that apply.

• Cold weather alert

• Low Balance Alert

• Unusual Activity Alert

• Profile Change Alert

How can you deposit money to your checking account? Select all that apply

• Take your paycheck to your bank branch closest to you

• Use a P2P app such as CashApp, Zelle, Venmo, etc.

• Use an in-network ATM to deposit cash or checks

• Direct deposit of paycheck

Which of these are NOT advantages of using on-line bill payment?

• You won't miss a payment deadline

• You will never overdraft your account

• You can set the date that the bill will be paid

• It is usually free to use online bill pay

Person-to-person (P2P) payment apps are becoming very popular. Which of these statements are true?

• P2P apps have high fees

• money can usually be transferred fee-free between individuals' checking accounts

• You have to touch phones together to complete the transaction

• If you use a credit card with a P2P app, you may be charged a fee.

Answer explanation

You can pay with a credit card, but you may incur a fee for those transactions.

Bank statments may include (select all that apply)...

• Beginning balance

• Ending Balance

• a detailed list of transactions

• Your Credit Score

You can use mobile banking apps to do the following:

• Check credit card purchases

• Check your account balance

• Change your address

• Pay Bills