W5F-AMI Day#4 (Checking & Online/Mobile Banking)

Three of these statements best describe a checking account. Which statement best describes a savings account?

• This account offers a convenient way to pay bills and access cash from an ATM

• This account pays you interest on money you have put away for later to help your money grow

• This account is automatically debited when you use a debit card

• This account typically allows an unlimited number of transactions per month

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 directly from your savings account

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

Which of the following statements is an advantage of online banking?

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

• Using online banking allows you to earn a higher interest rate

• Using online banking, you can request transfers, pay bills and automate your savings without visiting the bank branch

• You can only shop online if your bank account has online banking features

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 will 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

When signing up for a new checking account you answer "No" and opt out of 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 will 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 declined 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

A person-to-person payment app (such as Cash App or Venmo) could be used in each of the following scenarios EXCEPT...

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

• Rafael writes a check to cover the entire month’s rent, and his roommates Valerie and Carlos 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 for their share of the registration fee

• Mia pays Cheesy Pizza Co. for a pizza she orders on their website

Fill in the blanks: Direct deposit typically refers to your ______ sending your ______ electronically to your bank account.

• employer, bills

• employer, paycheck

• parents, allowance

• state government, taxes