NEW
Font size
WorksheetsPersonal Finance Ch 1 Review
Total questions: 19
Worksheet time: 10mins
You are at the checkout counter at the local supermarket and use your debit card to pay for your groceries. Where does the money for this purchase come from?
Your credit card company covers the cost
It is deducted directly from your checking account
Your credit card company provides you with a cash advance to cover the cost
It is deducted from your credit card account
Laura gets a text alert from the bank that her account balance has dropped below $100 after a series of $20 ATM withdrawals. She has not used her ATM in over a week and wonders what she should do. What would you recommend?
Wait until your monthly statement arrives so you can check to see if those withdrawals are still there
Wait a week as it is fairly common for the bank to catch mistakes like this
Check your wallet to be sure your debit card has not been stolen. If you still have it, then you should not worry.
Contact your bank immediately as it appears that your account may have been hacked
Which of the following is a way to access the money in your checking account?
Taking out cash using your credit card at an ATM machine
Using your debit card to pay for groceries at a Point-of-Sale (POS) terminal
Depositing a paycheck at an ATM
Receiving a person-to-person payment from your friend
You deposit a birthday check by using the bank app that you have on your smartphone. What is the standard amount of time that you will need to wait in order to get access to these funds?
Available immediately
Available the same day
Usually 1-7 business days later
30 business days
Which of the following transactions will REDUCE your checking account balance immediately?
Writing your monthly rent check which you will mail tomorrow
Using your debit card to pay for groceries at the supermarket
Using your credit card to pay for your school books
Depositing a check at a local bank branch
Which TWO of the following statements are advantages of online banking?
A&B
B&C
B&D
A&C
When signing up for a new checking account, you answer "Yes" to receive overdraft protection. On this day, you have $10 in your account and go out and use your debit card to buy lunch for $12, a movie ticket for $12 and dinner for $15. What is likely to be the outcome resulting from these transactions?
Your account would be closed
You will likely be charged an overdraft fee for EACH transaction and also will need to repay the bank for the amount overdrawn ($29) + interest
Since you requested overdraft protection, the bank will not allow you to overdraw your account so your debit card will be denied
The bank will provide you five days to add funds to your account to cover the overdraft and no fees will be assessed
Which checking account is best for you if you expect to have an average balance of $1,000?
Annual interest rate earned of 1.5% and monthly maintenance fee of $10/month
Annual interest rate earned of 1.0% and no monthly maintenance fee
Annual interest rate earned of 0% and monthly maintenance fee of $2.50/month
Annual interest rate earned of 2.0% and monthly maintenance fee of $5/month
Which of the following transactions may NOT be reflected when you go online to review your checking account balance?
ATM cash withdrawal from yesterday
Check that you mailed to your cousin for his birthday today
Automatic payment for your car loan paid two days ago
Debit card transaction from purchasing snacks at a local convenience store today
The largest source of fees for banks when it comes to checking accounts is...
Overdraft fees
Wire transfer fees
Check printing fees
Interest expense
What is NOT a good strategy to help you avoid overdraft fees?
Relying solely on the bank app that provides you with your current checking account balance
Keeping all of your receipts and using them to track your spending
Setting up a text alert so your bank will notify you when your balance falls below a certain level
Which of these is NOT a scenario in which a person-to-person payment could be used?
Margaret pays her neighbor $200 for breaking his window with a softball
RJ writes the whole monthly rent check to the landlord, and his roommates Mandy and Carrie pay RJ for their share of the monthly rent
Daisy's soccer coach pays the team's registration fee for a big tournament, and each player then owes him $35 for their share of the registration fee
Jennifer pays Rudolph the delivery driver from Cheesy Pizza Co. for a pizza she orders for her Spanish study group
Which of these transactions will a bank cover even if the customer does not have enough money in their account to cover the amount of the transaction?
An in-network ATM withdrawal
A debit card transaction on an account which the customer has opted-in to overdraft protection
A debit card transaction on an account which the customer has opted-out of overdraft protection
A debit card transaction in which the customer’s PIN was used
Callie is opening her first checking account, and she's trying to decide whether she should sign up for overdraft protection. Which friend's advice is MOST accurate?
Eddie says, "With overdraft protection, you never have to worry about how much money is in your account."
Ameilia says, "Yes, you'll have to pay a fee for each overdraft, but you DON'T have to pay the bank back the money you overdrew the account by."
Hannah says, "Overdraft protection may seem handy if you have an emergency (like needing gas to get to work) but you might pay lots of overdraft fees if you don't keep track of your account closely."
Gabbie says, "If you say "No" to overdraft protection, and you TRY to withdraw more than what's in your account, the bank will contact you to see if you want them to cover it."
Your cousin Kim overdraws her checking account at least 4 times per month every month. Which of the following recommendations does NOT seem reasonable to help get her account under control?
Kim should rework her budget and cut out nonessential purchases each month.
Kim should set up alerts on her account so she receives a text when she has a low account balance.
Kim should shut down her checking account and start paying for everything in cash.
If all of her spending is essential, she should look for a second job, a higher paying job, or a way to split costs with someone.
You are a customer with an Everyday Checking Account. Indicate which statement below about your account is TRUE.
If you are between 17 and 24, you will not pay a monthly service fee
Your monthly service fee is waived if you have at least $1,500 as a daily balance
You are earning interest on this account
Based on current regulations, you were automatically signed up for overdraft protection, and you have to call to cancel it if you don't want it
Which is an advantage of paying your bills using the online bill pay feature with your checking account?
The company you are paying receives the money on the same day.
There is typically only a small fee to set-up and use this feature.
It saves time and paper.
It eliminates late fees.
Which of the following is a TRUE statement about check cashing stores?
Their checking accounts typically cost less than traditional bank accounts
They tend to charge consumers a lot of hidden fees
Customers use check cashing stores even though the employees are unfriendly and often make customers feel embarrassed or out-of-place
They make their money by charging fees for transactions that can be done for free by customers with a traditional checking account
What is the most important question you should have after seeing this ad about a check cashing business?
How many locations do you have?
Can I get a written copy of all of the fees that you charge for your services?
What are your hours of operation?
How many tellers do you have?
