W!SE Practice Test Questions - BANKING

Which type of financial institution usually pays the highest interest rate on savings account balances?

• Savings banks

• Commercial banks

• Credit unions

• Investment firms

Using any of the following is borrowing from a lender except getting or using a

• Tax refund advance

• Credit card

• Debit card

• Pawn shop

A person’s paycheck is transferred electronically from her employer’s bank account into her checking account. What is this service called?

• ATM deposit

• Direct deposit

• IRS payment

• Debit card transaction

A person asks if checking accounts pay interest. What is the correct response?

• All checking accounts pay interest.

• Some checking accounts pay interest.

• Checking accounts never pay interest.

• Checking accounts pay interest if deposits are made weekly.

A person has $50 each month on a specific day transferred electronically from his checking account to his savings account. This is an example of a/an:

• Installment payment

• Automatic savings plan

• ATM transaction

• Debit card transaction

A person lost a debit card and did not report it missing for three months. If an unauthorized person used her debit card, the maximum the card owner may be responsible for is:

• $50

• $500

• The entire amount of debit transactions

• Zero if reported to the financial institution

When a check is made payable to cash, it

• Voids the check

• Creates a check that anyone can cash

• Does not allow the check to be deposited

• Restricts the life of the check to no more than 5 days

A person wrote a check for $100 but her checking account only has $25. The bank paid the check because she has

• Relatives who have accounts at the bank

• Had an account at the bank for more than 10 years

• A high credit score

• Overdraft protection

If a person loses a bank cash card and the card is used by someone else, the person who owns the card is never liable for more than $50, owns the card needs to close all their bank accounts, finds the card can make purchases with the card in a store or online, finds the card must charge the account personal identification number

• Owns the card is never liable for more than $50

• Owns the card needs to close all their bank accounts

• Finds the card can make purchases with the card in a store or online

• Finds the card must charge the account personal identification number

Which of the following statements about bank safe deposit boxes is NOT true?

• Safe deposit boxes are a good place to keep valuables

• Safe deposit boxes can only be accessed by its owner

• The owner of a safe deposit box pays an annual rental fee

• The owner has access to the safe deposit box at any time