AQR Banking Quiz

True or False:

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

• True

• False

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.

• 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

• Annually

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

• Overdraft fees

• Wire transfer fees

• Check printing fees

• Interest expense

While opening your checking account, the bank representative seems very interested in getting you to opt in for overdraft protection. What might explain his motivation?

• He wants to minimize the fees you might pay to the bank.

• He is required by law to sign you up for overdraft protection.

• He knows that once you decide to opt into overdraft protection, you cannot opt out.

• He may be receiving a sales commission for every customer who opts in to get overdraft protection.

Tags

CCSS.RL.11-12.3

CCSS.RL.6.3

CCSS.RL.7.6

CCSS.RL.8.6

CCSS.RL.9-10.3

Jillian is a high school student who typically earns $275 every two weeks at her part-time job. She is responsible for paying her own cell phone bill, gas when she drives her mom's car, and costs of going out with friends. She wants to set a low balance alert. What amount probably makes the most sense for Jillian?

• $5

• $50

• $500

• $5000

Which of the following is TRUE about checking accounts?

• They must pay an interest rate of at least 1% annually.

• Banks cannot change the fee policies on your account while it is open.

• Banks can only change the fee policies on your account once per year, between Jan. 1 and Jan. 31.

• Banks can change the fee policies as long as they put the changes in writing and notify you.

A person-to-person payment app could be used in each of the following scenarios EXCEPT...

• Tina pays her neighbor $200 for breaking his window with a softball.

• Rafael writes the whole monthly rent check to the landlord, and his roommates pay Rafael for their share of the monthly rent.

• Ahmed's soccer coach pays the team's registration fee for a big tournament, and each player then owes him $35.

• Mia pays Randy the delivery driver from Cheesy Pizza Co. for a pizza she orders for her Spanish study group.

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 seccured websites when entering in your account information online.