Unit 2 - Checking (Newcomer) Quiz

What does FDIC stand for and what does it provide?

• FDIC stands for Federal Deposit Insurance Corporation and it provides free checking accounts.

• FDIC stands for Federal Deposit Insurance Corporation and it provides security for money deposited in banks up to $250,000.

• FDIC stands for Financial Depository and Investment Corporation and it provides budgeting services.

• FDIC stands for Financial Depository and Investment Corporation and it provides overdraft fees.

WHy should you use a bank instead of keeping money at home?

• 1. Because banks offer free checking accounts and help you manage your money.

• 1. Because banks charge overdraft fees and provide budgeting services.

• 1. Because banks have FDIC insurance and offer security for money up to $250,000.

• Because banks offer cash all over the place and help you create a budget.

What is one way to stay on top of your money?

• By reading and checking our bank statements.

• By contacting our bank for lower fees.

• By withdrawing cash from ATMs.

• By earning income from government benefits.

What does a bank statement show?

• The dates for the statement.

• The record of money going out.

• The fees you may be paying.

• All of the above.

What is the recommended amount to keep in a checking account as a cushion?

• One full paycheck

• Six months worth of expenses

• All available funds

• No specific amount

What is direct deposit?

• A way to put your paycheck in the bank by going there.

• A way to put your paycheck in the bank without going there.

• A way to get paid with a paper check from the company.

• A way to save money for emergencies.

Why do operators of cashless stores claim that eliminating cash boosts productivity and efficiency?

• Employees no longer have to make change, count bills or roll quarters.

• Food handlers don't have to touch money teeming with bacteria and viruses.

• Cashless registers present no incentive for theft or robbery.

• All of the above.

Transaction:
Money is automatically transferred into Victor’s checking account for earnings from his job.  This is a __________.

• Deposit (+)
• Withdrawal (-)

Kayla had a balance of $106.15 in her checking account. She deposited $75.00. What is her new balance?

• 41.15

• 171.15

• 31.15

• 181.15

When do you have to endorse a check?

• every time you write a check
• you want to cash a check written to you
• never