Checking Accounts and Financial Tools Quiz

What is a benefit of using checks over cash?

• Checks are more expensive

• Checks are less secure

• Checks provide a written record of expenses

• Checks are faster to use

What is a requirement for using a debit card?

• A credit score check

• A PIN or personal identification number

• A minimum balance

• A monthly fee

What is a pro of using a debit card?

• It allows overspending

• It is inconvenient

• It is small and easy to carry

• It requires no PIN

What is a feature of checks?

• They are not legal documents

• They cannot bounce

• They function like cash

• They are only used for loans

What might happen if there are insufficient funds in a checking account?

• The check will be processed

• The check will bounce

• The account will earn interest

• The account will be closed

What is a benefit of using a checking account for paying bills?

• It is less convenient

• It is more expensive

• It is useful for paying bills instead of cash or money order

• It requires more paperwork

What is a safety advantage of using checks?

• Checks are less secure than cash

• Checks are safer than carrying cash

• Checks are more likely to be stolen

• Checks are harder to track

What is a special endorsement?

• The check can be transferred to a second party.

• The check is only valid for 24 hours.

• The check must be signed by a bank manager.

• The check is only valid in the issuing state.

What is the third set of numbers at the bottom of a check used for?

• Identifying the check number

• Identifying the account number

• Identifying the routing number

• Identifying the payee

What is the purpose of the magnetic strip on a debit card?

• To display the cardholder's name

• To automatically withdraw funds from the account

• To provide a decorative element

• To store the cardholder's address