Section 4.1: Part #2

What is a check?

• A written order for the bank to pay a specific amount

• A digital currency

• A type of savings account

• A form of electronic payment

What can a checking account owner do?

• Make deposits, write checks, and withdraw money

• Invest in stocks

• Only deposit money

• Only withdraw money

What are checking accounts also known as?

• Credit accounts

• Demand deposit accounts

• Fixed deposit accounts

• Loan accounts

How is a debit card obtained?

• Issued automatically to checking account customers

• By applying and determining creditworthiness

• By purchasing with cash

• Through an online application only

What is the result of using a debit card similar to?

• Taking a loan

• Investing in funds

• Earning interest

• Writing a check

What can a debit card be used for at ATMs?

• Only to check account balance

• To make withdrawals, deposits, and transfer money

• To apply for loans

• To purchase stocks

What happens when a debit card is used for a credit purchase?

• The transaction is declined

• A sales slip is signed

• Interest is charged immediately

• The account is credited

What is a disadvantage of using a debit card?

• It cannot be used for online purchases

• It has a low transaction limit

• Money is immediately withdrawn from the account

• It has high annual fees

What is required to issue a credit card?

• A checking account with the bank

• The customer to apply and meet certain conditions

• A recommendation from another credit card holder

• A large deposit

What is a savings account used for?

• To pay bills online

• To write checks

• To accumulate money for future use

• To borrow money