Banking Exam

1. Juan saved $1,000 from his summer job cleaning pools. Which of these account types would work best for him if he doesn't need access to the money for a number of years AND wants to earn the highest interest rate?

• 1. Regular savings account

• 1. Money Market account

• 1. Certificate of Deposit

• 1. Checking account

1. All of the following are downsides of being unbanked EXCEPT:

• 1. Lack of access to credit

• 1. Difficulty making cashless purchases

• 1. Lost time paying bills

• 1. Lack of fees associated with banks

1. Fill in the blanks: Direct deposit typically refers to your ______ sending your ______ electronically to your bank account.

• 1. state government, taxes

• 1. parents, allowance

• 1. employer, paycheck

• 1. employer, bills

1. A person-to-person payment app could be used in each of the following scenarios EXCEPT...

• 1. Mia pays Cheesy Pizza Co. for a pizza she orders on their website

• 1. Ahmed's soccer coach pays the team's registration fee for a big tournament, and each player then owes him $35 for their share of the registration fee

• 1. Rafael writes a check to cover the entire month’s rent, and his roommates Valerie and Carlos pay Rafael for their share of the monthly rent

• 1. Tina pays her neighbor $200 for breaking his window with a softball

1. When signing up for a new checking account you answer "No" and opt out of overdraft protection. On this day, you have $10 in your account and go out and use your debit card to buy lunch for $12, a movie ticket for $12 and dinner for $15. What is likely to be the outcome resulting from these transactions?

• 1. The bank will provide you five days to add funds to your account to cover the overdraft and no fees will be assessed

• 1. Since you declined overdraft protection, the bank will not allow you to overdraw your account so your debit card will be denied

• You will likely be charged an overdraft fee for one or more of the transactions and also will need to repay the bank for the amount overdrawn

• 1. Your account will be closed

1. How often do customers typically receive a bank statement for their checking account?

• 1. Annually

• 1. Monthly

• 1. Weekly

• 1. Daily

1. When signing up for a new checking account, you answer "Yes" to receive overdraft protection. On this day, you have $10 in your account and go out and use your debit card to buy lunch for $12, a movie ticket for $12 and dinner for $15. What is likely to be the outcome resulting from these transactions?

• 1. The bank will provide you five days to add funds to your account to cover the overdraft and no fees will be assessed

• 1. Since you requested overdraft protection, the bank will not allow you to overdraw your account so your debit card will be denied

• 1. You will likely be charged an overdraft fee for one or more of the transactions and also will need to repay the bank for the amount overdrawn

• 1. Your account will be closed

1. FDIC Insurance is...

• 1. Protection for bank customers’ deposits up to $250,000, guaranteeing their money is still available if the bank goes out of business

• 1. Required if you want to do online or mobile banking

• 1. Insurance bank branches can buy to protect their business against fraud and scams

• 1. Optional coverage consumers can purchase so that their bank deposits remain safe

1. Which of the following statements is an advantage of online banking?

• You can only shop online if your bank account has online banking features

• Using online banking, you can request transfers, pay bills and automate your savings without visiting the bank branch

• Using online banking allows you to earn a higher interest rate

• Once you set up online banking, your bank will waive overdraft, ATM, and monthly fees

1. Which of the following transactions will REDUCE your checking account balance immediately?

• 1. Depositing a check at a local bank branch

• 1. Using your credit card to pay for your school books

• 1. Using your debit card to pay for groceries at the supermarket

• 1. Writing your monthly rent check which you will mail tomorrow