Chapter 12 - Cash, Check, or Card?

Part 1: True or False? Read the statements below and select T if the statement is true or F if the statement is false. 1. A strong password can be created by using self-identifying and obvious facts about yourself.

• True

• False

Answer explanation

False. A strong password should not include self-identifying information, as it can be easily guessed or discovered. Instead, use a mix of letters, numbers, and symbols that are not related to personal facts.

A written, legal document that orders a person's bank to pay a sum of money out of their account to a specified person or business is called a deposit.

• True

• False

Answer explanation

The statement is false because a written, legal document that orders a bank to pay money is called a check, not a deposit. A deposit refers to money placed into a bank account.

Part 1: True or False? Read the statements below and select T if the statement is true or F if the statement is false. 3. e-Filing taxes is the easiest, fastest, and safest way to submit individual tax returns.

• True

• False

Answer explanation

True. e-Filing taxes is widely recognized as the easiest, fastest, and safest method for submitting individual tax returns, offering convenience and security compared to traditional paper filing.

There are four common types of endorsement options.

• True

• False

Answer explanation

The statement is false because there are more than four common types of endorsement options. Thus, the correct answer is 'False'.

Phishing is when thieves send out e-mails that ask for private information.

• True

• False

Answer explanation

True. Phishing involves sending fraudulent emails to trick individuals into providing sensitive information, such as passwords or credit card numbers.

What is considered to be private information?

• Account passwords

• Bank account numbers

• Birth date

• All of the above

Answer explanation

Private information includes sensitive data that can be used to identify an individual. Account passwords, bank account numbers, and birth dates are all examples of such information, making 'All of the above' the correct choice.

What can a person do if their identity is stolen?

• Place a fraud alert and get a copy of their credit reports

• File a report with the police department

• A and B

• None of the above

Answer explanation

If a person's identity is stolen, they should place a fraud alert and obtain their credit reports to monitor for unauthorized activity. Additionally, filing a police report helps document the crime, making 'A and B' the correct choice.

Checks written by the account holder that have not yet cleared the bank are known as

• Outstanding deposits

• Outstanding checks

• Non-sufficient funds

• Electronic funds transfer

Answer explanation

Checks written by the account holder that have not yet cleared the bank are referred to as outstanding checks. This term specifically indicates that these checks are still pending and have not been processed by the bank.

Words or a sequence of characters that must be input in order to gain access to something are called

• Passwords

• Account code

• Security system

• User protocol

Answer explanation

The correct answer is 'Passwords' because they are specifically defined as words or sequences of characters used to gain access to secure systems or accounts, distinguishing them from other options like account codes or user protocols.

Define the following: Service fee

• Fee charged by the bank for services provided

• Interest earned on savings account

• Amount deposited by the customer

• Loan amount approved by the bank

Answer explanation

A service fee is specifically defined as a fee charged by the bank for services provided, distinguishing it from other financial terms like interest or loan amounts.