Checking Assessment Review

Jocelyn gets a text alert from the bank that her account has dropped below $100 after a series of $20 ATM withdrawals. She has not used her ATM in over a week and wonders what she should do. What would you recommend?

• Wait until her monthly statement arrives so she can check to see if those withdrawals are still there

• Wait a week, as it is fairly common for the bank to catch mistakes like this

• Check her wallet to be sure her debit card has not been stolen. If she still has it, then she should not worry

• Contact her bank immediately as it appears that her account may have been hacked

Which of these is the most convenient feature of using online and mobile banking?

• Once you set up online banking, your bank will waive overdraft, ATM, and monthly fees

• By signing up for online banking, you will activate the FDIC insurance on your account

• Using online banking, you can request transfers, bill pay, automatic savings, and other features without visiting the bank branch

• You can shop online only if you've set up online banking

When signing up for a new checking account you answer "Yes" to receive overdraft protection. On this day, you have $10 in your account. You 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 EACH transaction and also will need to repay the bank for the amount overdrawn ($29)

• Because you requested overdraft protection, the bank will not allow you to overdraw your account, so your debit card will be denied in these 3 instances

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

Which of the following is a good habit to protect your checking account information?

• Carry the username and password for your online banking account in your purse or wallet in case you need it on-the-go

• Create complex passwords that are a long combination of letters, numbers, and symbols

• Use your account number as your online banking password so it is easy for you to remember but difficult for others to guess

• Share login information with a few friends and family members so that trusted individuals can access your money in an emergency

Leia has a checking account at a credit union, but she loads cash onto and uses prepaid cards sometimes, too. What might be her reason?

• She can use a prepaid card to shop online but cannot do the same with a debit card

• She earns points, miles, and other perks by using a prepaid card that she doesn’t with her debit card

• She feels the prepaid card prevents her from overspending because she loads on a fixed dollar amount and there is no option to overdraw

• Credit unions charge fees every time she uses her debit card, whereas prepaid cards typically have no fees

When signing up for a new checking account you answer "No" to receive overdraft protection. On this day, you have $10 in your account. You 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 will be closed

• You will likely be charged an overdraft fee for EACH transaction and need to repay the bank the funds overdrawn ($29)

• Because you turned down overdraft protection, the bank will not allow you to overdraw your account so your card will be denied in these 3 instances

• The bank will provide you with five days to add funds to your account to cover the overdraft but will not charge you any fees.

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

• Overdraft fees

• Wire transfer fees

• Check printing fees

• Interest expense

Which best describes the difference between a checking statement and a checking agreement/summary?

• A statement shows you all of the deposits and withdrawals from your account, and an agreement shows you the terms of the account, such as fee structure and minimum requirements

• A statement shows you the terms of the account, such as fee structure and minimum requirements, and an agreement shows you all of the deposits and withdrawals from your account

• A statement can be downloaded from your online banking account, while an agreement must be obtained in person at a bank branch

• A statement must be obtained in person at a bank branch, while an agreement can be downloaded from your online banking account

How are credit unions and banks different?

• Typically, deposits at a bank are insured, but deposits at a credit union are not

• Banks charge overdraft fees, but credit unions do not

• Banks are for profit and owned by shareholders, while credit unions are not for profit and are owned by members

• Banks allow customers to do online banking, while credit unions are too small to provide that service

Each of the following are benefits of direct deposit EXCEPT...

• It's safe

• It splits money automatically between your checking and savings

• It is convenient

• You have quick access to money