BSBA FINAL EXAMINATION

1.What is an automatic transfer between a checking and savings account typically used for?

• a) Paying bills

• b) Depositing extra funds into savings

• c) Buying groceries

• d) Paying off credit card debt

2.Which of the following is NOT a common feature of a savings account?

• a) Limits on withdrawals

• b) Interest earned on the balance

• c) Use of checks or debit cards

• d) Security against loss of funds

3. 3. What does it mean to overdraft your checking account?

• a) You have too much money in your account

• b) You have withdrawn more money than what is available

• c) You have closed your account

• d) You have transferred money from savings to checking 

4. 4. What is the primary purpose of a checking account?

• a) To save money for retirement

• b) To manage daily transactions and expenses

• c) To earn high interest

• d) To invest in stocks 

5. 5. What is typically the best method for managing bills and expenses?

• a) Keeping cash in an envelope

• b) Using the bank's debit card for everything

• c) Setting up automatic payments or reminders

• d) Ignoring your spending until the month is over

6. 6. What should you regularly monitor in your checking account to avoid fees or fraud?

• a) Interest rates in savings accounts

• b) Your account balance and transaction history

• c) Your credit score

• d) Stock market trends 

7. 7. What is the most common reason someone would open a checking account instead of just using cash?

• a) To earn interest

• b) To manage money for short-term expenses and receive direct deposits

• c) To avoid taxes

• d) To limit spending

8. What does "reconciliation" mean in terms of managing a checking account?

• a) Balancing the account with the bank’s statement to ensure all transactions match

• b) Transferring money from savings to checking

• c) Paying bills through the account

• d) Making deposits into the account

9. 9. Which of the following is typically a benefit of a checking account?

• a) Higher interest rates than savings accounts

• b) Easy access to funds through checks, debit cards, and ATMs

• c) Limits on the number of transactions

• d) No fees associated with the account

10. If you want to avoid paying ATM fees, what should you do?

• a) Use an ATM from the bank where you have an account

• b) Use any ATM

• c) Always go inside the bank

• d) Withdraw money only once per month