WorksheetsUnit 3 - Checking and Banking 2022
Total questions: 36
Worksheet time: 16mins
Which of the following is TRUE about checks? (hint: choose 2 correct answers)
You should endorse the back when writing a check
The amount of money is written both numerically and in words
Checks should show up on your statement within 30 days
You should endorse the back when depositing a check
Overdraft protection...
is a service offered only for premium checking accounts.
brings in a few hundred dollars each year to banks.
is a fee-free service that prevents you from overdrawing.
can keep you from overdrawing but charges a fee.
Mobile or email alerts for your checking account can notify you of...(hint: choose 3 correct answers)
Low balances
Unusual activity
Deposits
Credit Card transactions
A checking account is best used for...(hint: choose 2 correct answers)
Saving money
Storing money to spend
Investing money
Placing money you earn
Which type of financial institution typically has membership requirements?
Credit Union
Online Commercial Bank
Commercial Bank
Federal Reserve Bank
Which type of account is typically the most liquid?
Checking account
Savings account
Certificate of Deposit
Exchange Traded Fund
Which type of account will typically have the highest interest rate?
Checking account
Savings account
Money Market account
Certificate of Deposit
Which of these fees would likely be the highest
Overdraft fee
Account transfer fee
Monthly service fee
ATM fee
Which of the following is a unique feature of credit unions
Credit unions are typically owned and run buy their members
Credit unions limit membership to certain people or groups
Credit unions offer a wide variety of banking services
Both A&B
The numbers on the bottom of a typical check represent all of the following except
Social Security number
Routing Number
Account Number
Check Number
What part of a check is the least important?
The check number
Signature line
Memo line
Routing number
How often should you typically monitor your checking account?
Monthly
Yearly
Daily
Every three months
Which of the following represent typical account fees?
ATM fee
Service fee
Minimum balance fee
All of the above
Which of the following is not a type of bank?
Credit Union
Online Bank
Payday Lender
Retail Bank
What's the best strategy for voiding ATM fees
Only use ATMs close to your house
Only use ATMs to withdraw cash
Only use ATMs in your banks network
Only use ATMs you have used before
what is the purpose of balancing or monitoring your checking account?
to find out which checks you have bounced
to help you calculate how much money you have in your account
to keep an estimation of how many checks you right
to stop identity theft from occurring
the best way to ensure the accuracy and safety of your accounts is to:
monitor your online accounts regularly
shred your paper account statements weekly
call your customer service center daily
balance your checkbook annually
with a traditional savings account, you will be charged a fee if:
you deposit too much money at once
you withdraw money too often
you open an account online
you close the account
What is the key difference between simple interest and compound interest?
Simple interest pays a greater rate of return.
Compound interest pays more than once per year.
Compound interest is for loans and simple interest is for savings
Simple interest is only for large banks to charge,
How does the FDIC help prevent a bank from failing?
They help banks find new customers to take out large loans.
They insure the deposits in the bank so people are not as likely to take all their money out at once.
They promote the banks through advertising and create new business for the bank.
They pass laws in Congress to allow the banks to charge more in interest.
Moving money from one account to another is called a ______________.
Swap
Transfer
Glide
Movement
Putting money into an account is known as _______________.
Sinking
Placing
Withdrawing
Depositing
Why is opening a bank account a smart way to save money?
You can earn interest on money you place in a savings account
You can cash checks without paying a fee to a currency exchange.
You can make sure your money is safe from theft.
All of the above,
What is an overdraft fee? (BTW these are all real fees)
A fee that you are charged when you use a debit card to buy something worth more than what you have in your account.
A fee that is charged when you use an ATM that is not part of your bank's system.
A fee that is charged when you have less money in your account that is required by the minimum balance.
A fee that is charged when you make too many online money transfers out of your savings account in a month.
Which of the following accounts would most likely pay the highest interest rate?
A basic checking account
A basic savings account
A savings account with a $250 minimum balance
A $500 CD account with a term of 12 months.
Which of the following accounts is it the easiest to take money out of the bank with?
A basic checking account
A basic savings account
A savings account with a $250 minimum balance
A $500 CD account with a term of 12 months.
