Chp 18.1 -Using Financial Services

Why should you start dealing with financial institutions when you start earning money?

• Because piggy banks are more secure.

• Because piggy banks lack the safety and earnings potential found at financial institutions.

• Because financial institutions are less secure.

• Because financial institutions do not offer any interest.

What does a debit card show about the cardholder?

• The cardholder has a savings account.

• The cardholder has an established checking account.

• The cardholder has a credit account.

• The cardholder has a loan account.

What is required to use a debit card for a transaction?

• A signature

• A personal identification number (PIN)

• A photo ID

• A password

What is one of the greatest advantages of electronic banking (e-banking)?

• You can only do your banking during bank hours.

• You can pay bills without mailing checks.

• You need to visit the bank for every transaction.

• You can only manage your accounts at the bank.

What should you never transmit through e-mail according to the text?

• Bank statements

• Personal identification number (PIN)

• Usernames or passwords

• Account balance

What do you need to use an Automated Teller Machine (ATM)?

• A credit card

• A special banking card with a PIN

• A photo ID

• A checkbook

What service do automated teller machines (ATMs) provide?

• Loan approval

• Routine banking services 24 hours a day

• Investment advice

• Insurance services

What should you do immediately after using an ATM card to withdraw cash?

• Call the bank

• Record the transaction in your checkbook

• Notify the police

• Deposit more money

What is a cashier's check?

• A check drawn on the institution's own funds and signed by an officer of the institution

• A personal check guaranteed by the financial institution

• A check issued by a retail store

• A check that can only be used for international transactions

What is the purpose of safe-deposit boxes in financial institutions?

• To store large amounts of cash

• To store valuable items and important papers

• To provide loan services

• To offer investment advice