PF 2.2 Beware of Banking Fees

What is the process of calculating the balance in a checking account after a deposit and a withdrawal?

• Add the deposit amount to the initial balance and then subtract the withdrawal amount.

• Subtract the deposit amount from the initial balance and then add the withdrawal amount.

• Multiply the deposit amount by the withdrawal amount and add to the initial balance.

• Divide the initial balance by the deposit amount and subtract the withdrawal amount.

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4. How does the amount spent on purchases compare to the amount spent in fees?

• The amount spent on purchases is greater than the amount spent in fees.

• The amount spent on purchases is less than the amount spent in fees.

• The amount spent on purchases is equal to the amount spent in fees.

• There is no comparison between the amount spent on purchases and fees.

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6. What can you do to spend less on fees?

• Check balance frequently

• Keep more money in your account

• Not spend more than you have

• Set up alerts for low balance

1. What fee or fees are the largest? Approximately how much are they?

• Overdraft and non-sufficient funds are both around 35.

• Some international wire transfers may be 35 as well.

• Both overdraft and international wire transfers are around 35.

• None of the above.

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2. Why might small ATM fees prove to be very expensive?

• Because you can incur a lot of them very quickly and not realize how much you’re paying in fees.

• Because ATM fees are always high regardless of the amount.

• Because they are charged per transaction and can add up over time.

• Because they are hidden and not disclosed to the user.

1. What is misleading about the term “overdraft protection”?

• It implies something beneficial.

• It keeps your money safe.

• It is a free service.

• It is another costly bank fee.

True or False: Once you are signed up for overdraft protection, you cannot opt out.

• True

• False

Which type of alert can stop you from spending before you incur costly overdraft or non-sufficient funds fees?

• a. Low Balance

• b. Direct Deposit

• c. Unusual Activity

What is an overdraft fee?

• Fee for withdrawing more money than you have in the account

• Fee for writing a check

• Fee for going below your minimum balance requirement

• Fee for making too many transfers from your account

Tori has $75 in her checking account and swipes her debit card for a $90 purchase at Target. She has overdraft protection. What most likely happens?

• Her purchase is declined

• Target calls the police to report her for fraud

• Her purchase is approved, and she pays no fee

• Her purchase is approved, but she pays an overdraft fee