Banking and Checking Test Review

When you use a debit card, you give your bank permission to immediately remove money from your checking account.

• True

• False

It is in your best interest to use ATMs at your own institution to avoid fees.

• True

• False

All checking accounts are interest bearing.

• True

• False

You may choose to have a depository institution cover your transaction if you don’t have sufficient funds in your account.

• True

• False

All depository institutions are required by law to charge the same fees.

• True

• False

One person can open accounts at more than one depository institution.

• True

• False

Money can be withdrawn at any time from a checking account.

• True

• False

A bounced check is a result of an overdraft.

• True

• False

A depositor has two individual accounts at one bank. The first account has a balance of $100,000 and the other has a balance of $200,000. The full amount of his deposits would be covered by the FDIC.

• True

• False

Who is responsible for keeping track of your debit card purchases?

• A) your bank or credit union

• B) the stores will send you statements after every purchase

• C) you

• D) the debit card company