Banking Assignment

Juan

saved $1,000 from his summer job cleaning pools. Which of these account typeswould work best for him if he doesn't need access to the money for a number of yearsAND wants to earn the highest interest rate?

• regular savings account

• Money Market account

• Checking account

• Certificate of Deposit

All of the following are true about prepaid cards EXCEPT…

• Prepaid cards typically include a lot of fees

• Prepaid cards are a useful option for someone who is unbanked to make online purchases

• Prepaid cards are a great way to build credit

• Prepaid cards are usually accepted anywhere that debit and credit cards are accepted

Which of these is a reason someone might choose to open an online savings accountrather than a savings account at a traditional bank?

• Online savings accounts are FDIC insured to a higher limit

• Online savings accounts typically pay higher interest rates ondeposits

• Online savings accounts are less likely to make you the victim of identity theft

• Online savings accounts are created specifically for people under age 25

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 forlater 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 payfor 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

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 overdraftprotection. On this day, you have $10 in your account and go out and use your debit cardto buy lunch for $12, a movie ticket for $12 and dinner for $15. What is likely to be theoutcome 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 overdrawyour 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

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?

• You will likely be charged an overdraft fee for one or more of the transactions andalso will need to repay the bank for the amount overdrawn

• Your account will be closed

• 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 theoverdraft and no fees will be assessed