Account Management: Banking Essentials & Management

A checking account is a good option for: More than one answer may be correct.

• a) earning interest at higher rates

• b) long-term investments

• c) depositing paychecks

• d) paying bills

A savings account is a good option for: More than one answer may be correct.

• a) day-to-day transactions

• b) short-term savings

• c) account transfers

• d) emergency fund

You should check your bank statement at least:

• a) Once a day

• b) Twice a week

• b) Once a month

• d) Once a year

You should keep copies of all your financial records because financial institutions such as your bank or credit union may not retain this information for as long as you need it.

• True

• False

You should keep copies of all your financial records because financial institutions such as your bank or credit union may not retain this information for as long as you need it.

• True

• False

A personal financial money management program enables you to easily track all your income and expenditures in one place.

• True

• False

You do not have sufficient funds in your checking account. Which of the following would be a fair reason to use money from your savings account?

• a) You get a flat tire the day before an important business trip.

• b) A coat you like is on sale at 35% off.

• c) You want to celebrate your significant other’s promotion by dining with him/her at a fancy restaurant.

• d) Your friends are taking a vacation and you want to go with them.

While checking her old bank statements, Janet noticed that, 65 days ago, she was charged for something she did not purchase. She immediately filed a dispute with her bank, but it was rejected. Why did this happen?

• a) Because a dispute about unauthorized transactions needs to be submitted within 1 week.

• b) Because a dispute about unauthorized transactions needs to be submitted within 15 days.

• c) Because a dispute about unauthorized transactions needs to be submitted within 30 days.

• d) Because a dispute about unauthorized transactions needs to be submitted within 60 days

Samantha is trying to organize her finances and automate her bank accounts. To do this, she followed the steps shown in the flow chart.

In which step did Samantha go wrong?

• a) Nowhere; she did everything right.

• b) She should have set up direct deposit before opening the checking account.

• c) She should have paid herself first, transfer money to her savings before she set up auto bill payment.

• d) She shouldn’t have set up automatic bill payments because they can negatively affect her credit.

The main reason behind prioritizing an emergency fund over a long-term investment is its liquidity (easy to turn into cash)

• True

• False