Banking Review

Credit unions are:

• For-profit organizations

• User-owned non-profit organizations

• Government agencies

• Private banks

What amount of money can you be responsible for if your debit card is lost or stolen and you wait up to 60 days to report it?

• $50

• $500

• Total of account

• None of these

What is the definition of compounding interest?

• Stops lost or stolen checks

• Checking account

• Pays many times more than regular savings accounts

• Interest that is earned on previously earned interest

What does Overdraft Protection provide?

• A savings plan requiring a deposit for a specified time.

• An automatic transfer made to checking account customers to cover the amount of checks written and payments in excess of the available balance in the checking account from another linked account.

• An interest-bearing checking account at a credit union.

• A financial institution that offers a full range of financial services.

Which of the following should you consider when selecting a savings plan?

• Interest Rate

• Fees

• Account minimums

• How long your money stuck for a length of time

Which of the following is a way to minimize ATM fees?

• Use your bank’s ATMs to avoid surcharges

• Withdraw smaller amounts frequently

• Use ATMs from different banks

• Avoid using ATMs altogether

Which account requires a minimum balance and has earnings based on market interest rates?

• Certificate of Deposit

• Money Market Account

• Share Draft Account

• Commercial Bank Account

Which option is not a way to minimize ATM fees?

• Use the ATM when the bank is closed

• Use your bank’s ATMs

• Obtain cash back at supermarkets

• Withdraw larger amounts to avoid several small transactions

Why should you never share passwords or personal information online?

• It makes it easier to remember

• It can lead to unauthorized access to your accounts

• It helps friends access your accounts

• It is a recommended practice

Which statement best describes what people should do with excess funds?

• Invest excess funds in high-risk stocks immediately.
• Withdraw excess funds and keep them in cash at home.
• Keep all funds in the checking account for easy access.
• Transfer excess funds to a higher-yield savings account.