Banking 2

Overdraft protection...

• Allows you to withdraw more money than you have in your account

• Protects your account from unauthorized transactions

• Helps you save money for emergencies

• Provides insurance for your deposits

Which of the following is TRUE about banks and credit unions?

• Banks are for-profit institutions, while credit unions are non-profit

• Banks offer higher interest rates on savings accounts than credit unions

• Credit unions are insured by the FDIC, while banks are not

• Banks are owned by their customers, while credit unions are owned by shareholders

Which of the following is NOT required to open a checking account?

• Proof of identity

• Proof of address

• Social security number

• Minimum age requirement

How can you protect your checking account when using online and mobile banking?

• Use strong and unique passwords

• Avoid using public Wi-Fi networks

• Regularly monitor your account activity

• All of the above

The best reason for deposing money in a bank or credit union savings account instead of keeping your money "under the mattress" is that:

• money deposited in savings accounts are FDIC insured
• most savings accounts earn a guaranteed rate of interest
• most savings accounts come with a free credit card
• money in a savings account can be accessed any time during the day or night

Financial services and products generally offered by banks and credit unions include:

• Real estate listings
• savings and loans
• legal services
• business plans

You have a checking account balance of $150 and you deposit a personal check of $300 from your aunt into your checking account.  When will you be able to withdraw $200 in cash?

• The same day as the $300 deposit
• 3 to 7 days later, depending on your bank's check clearance policy
• after receiving a checking account statement at the end of the month
• on the day you make your next deposit

Mel has $50 a month transferred electronically from her checking account to her savings account.  This is an example of 

• an installment payment payment
• a savings plan
• an ATM transaction
• a debit card transaction

Putting money into a savings account is called

• verifying the account
• balancing the account
• making a deposit
• making a withdrawal

Banks use savings account deposits to 

• make their services and products attractive for new depositors
• pay for employee special projects and benefits
• give loans to consumers and businesses
• improve the quality of life in low-income communities