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WorksheetsPersonal Finance - Banking Review
Total questions: 66
Worksheet time: 50mins
Which of the following is an effective strategy for personal saving?
Wait until the end of the month and save whatever is left in your checking account
Save a certain percentage of each paycheck and deposit it directly into a savings account
Cover all of your wants and needs and save whatever is left over
Take out a payday loan so you can save before you receive your paycheck
Three of these statements best describe a checking account. Which statement best describes a savings account?
This account offers a convenient way to pay bills and access cash from an ATM
This account pays you interest on money you have put away for later to help your money grow
This account is automatically debited when you use a debit card
This account typically allows an unlimited number of transactions per month
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 will be closed
You will likely be charged an overdraft fee for one or more of the transactions and also will need to repay the bank for the amount overdrawn
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
With your authorization, your bank will withdraw the amount of your monthly payment or bill from your bank account.
Automatic Payment
Direct Deposit
Automated Teller Machine
Plastic Payments
This card is called a ______, which is a cash card that allows you to withdraw money or pay for purchases from your checking or savings account.
Passbook
SIM Card
Debit Card
Credit Card
If you lose your debit card, or if it is stolen, do not notify your bank immediately. Most card issuers will hold you responsible for stolen funds.
True
False
A _________ is a purchase by a debit card of a good or service at a retail store, a restaurant, or elsewhere.
Point-of-Sale Transactions
Online Transactions
Over-the-Counter Transactions
Under-the-table Transactions
Jocelyn 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 her monthly statement arrives so she 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 her wallet to be sure her debit card has not been stolen. If she still has it, then she should not worry.
Contact her bank immediately as it appears that her account may have been hacked
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 of the following statements is an advantage of online banking?
Once you set up online banking, your bank will waive overdraft, ATM, and monthly fees
Using online banking allows you to earn a higher interest rate
Using online banking, you can request transfers, pay bills and automate your savings without visiting the bank branch
You can only shop online if your bank account has online banking features
How often do customers typically receive a bank statement for their checking account?
Daily
Weekly
Monthly
Annually
All of the following are downsides of being unbanked EXCEPT
Lack of access to credit
Lost time paying bills
Lack of fees associated with banks
Difficulty making cashless purchases
Fill in the blanks: Direct deposit typically refers to your ______ sending your ______ electronically to your bank account.
employer, bills
employer, paycheck
parents, allowance
state government, taxes
FDIC Insurance is...
Optional coverage consumers can purchase so that their bank deposits remain safe
Insurance bank branches can buy to protect their business against fraud and scams
Required if you want to do online or mobile banking
Protection for bank customers’ deposits up to $250,000, guaranteeing their money is still available if the bank goes out of business
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 directly from your savings account
When signing up for a new checking account you answer "No" and opt out of 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 will be closed
You will likely be charged an overdraft fee for one or more of the transactions and also will need to repay the bank for the amount overdrawn
Since you declined 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
Is this a debit card or a credit card?
debit card
credit card
What are the benefits of using a debit card?
It is like using your own cash and it's convenient.
There is no overdraft fee.
There is no interest fee.
You can check and track down your transactions.
What is this paper?
It's a tax return paper
It's a credit card statement
It's a bank statement
What type of account is this about?
VISA gold
Savings - Basic Plan
MasterCard Aeroplan
Chequing - Basic Plan
What does the debit column show?
It shows the transactions that you made
It shows the money you deposited
Which one is the pay cheque?
25 OAK ST. / CHEQUE USD $300.00
680 MAIN ST. $100.00
SOHO HOTEL / PAYCHEQUE - $1575.00
Fill in the blanks with a correct word.
Miriam has her own bank account. She is the _________________.
account balance
joint account
bank statement
account holder
Fill in the blanks.
Hani can withdraw, deposit, transfer or pay bills, etc. as many times as he needs. His bank gives him ______________________.
NSF charge
overdraft protection
unlimited transactions
fee waiver
Fill in the blanks.
Lily withdrew and deposited money 11 times last month. She went over her _________________by one. She has to pay $1.00
unlimited transactions
transaction limit
fee waiver
NSF charge
Fill in the blanks.
Many banks do not charge fees for transactions if you keep a minimum balance. They offer a ___________________________.
unlimited transactions
transaction limit
fee waiver
NSF charge
Fill in the blank.
Lucy's employer doesn't giver her a pay cheque. Instead, her pay goes into her bank account. She uses _________________ because it is convenient.
direct deposit
account balance
NSF charge
minimum balance
True or False.
Amy files to Ontario twice a month. CIBC Aero Platinum VISA is the better choice for her.
True
False
True or False.
Rachel loves to travel. She is a full-time student and has no income. CIBC Aero Plantinum VISA is not a good choice for her.
True
False
True or False.
You can get $20 cash for CIBC Tim Horton VISA as welcome bonus after you spend $200.
True
False
True of False.
Andy got CIBC Aero Platinum VISA and he bought a new TV as a first purchase. He gets 10,000 Aeroplan Miles points.
true
false
True or False.
For CIBC Aero Platinum VISA, you need to pay 22.99% of annual interest for purchasing.
true
false
True or False.
Greg and Amanda are a couple. Greg's annual income is $75,000 and Amanda's annual income is $80,000. Amanda can apply for CIBC Aero Platinum VISA.
true
false
Select the option that IS NOT a Bank in Canada...
TD Canada Trust
CIBC
Scotia Bank
Walmart
Debit cards are usually linked to our savings account(s)
True
False
Two people both deposit the same amount of money over 10 years. One account earns compound interest, the other earns simple interest. Which account will have more money in it after 10 years?
Compound interest account
Simple interest account
Neither, they will both have the same amount after 10 years
If you lose your credit card, you should:
Call the bank or credit card company right away to cancel your card.
Go back to the store where you last used the card.
Keep looking. You'll find it soon.
You can cancel a credit card at any time.
No. Each credit card has a contract like a cell phone.
Yes, you need to give three months notice like apartment.
Yes, you can cancel at any time.
If there are purchases on your credit card that you did not make, the credit card company will usually:
Give 50% money back
Do nothing.
Give you your money back.
Sometimes a credit card company will phone you if they notice unusual purchases on your card.
False
True.
They will only call you if you don't pay your bill.
When writing a check, it is a good idea to use
pencil
erasable pen
blue or black ink pen
red pen
A financial institution usually requires that an individual write a check or pay in cash for monthly service fees.
true
false
All financial institutions and banks charge the same types of fees.
True
False
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.
An account you can deposit money into and then write checks or use debit card to withdraw money is known as a ____________________.
Money Market
Checking
Savings
ATM
Which of the following is not a characteristic of a SAVINGS ACCOUNT?
Safe place to store money
Owners can write checks from the money in the account
Money is protected by Federal Insurance
Money gains interest over time
Great way to save for something you want or an emergency
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,
Which of the following about Debit cards is NOT true?
They take money straight out of your bank account
You can be charged for using your debit card to take money out of another bank's ATM.
Some banks have a limit on how much you can purchase with your debit card in a day.
You never have to be concerned with someone committing fraud against your debit card.
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.
Why is direct deposit a smart financial idea?
You get your money faster
You get your money safely
You can keep track of your money easier
All of the above
Financial fraud can occur through what methods?
Face to face interactions
Phone calls
Short message services (SMS)
All of the above
If someone you did not know to start and pressure you to invest, what should you do?
Verify it
Say “Thank you” and reject him/her
Be skeptical
All above are correct
All of the following are ways to protect yourself from fraud except...
Not carrying your Social Security card
Posting all your information on the Internet
Shredding personal documents before discarding them
Memorizing and using difficult PIN numbers
A friend of a friend has told you about a supersafe investment that has ultrahigh returns — well above the current market rate. This type of investment is:
Almost certainly a scam
A great opportunity. You’ve got a recommendation and a guarantee from the investor
A suspicious investment you should only put a little money into
Worth looking into, because of the high return and the acquaintance’s recommendation
Which of the following is not a way to protect yourself from fraud online?
Use unsecured public Wi-Fi at an airport to make important financial transactions
Update your operating system, web browsers and email software frequently
Jump at free downloads and save them to your hard drive
What are the 3 steps to secure your computer to lower down the risk of cybercrime attack?
Use anti-virus software/malware software
Usage of unprotected public network
Activate firewall
Block spyware
the movement of money electronically from one financial institution to another
electronic funds transfer
electronic financial transitioning
automated teller machine
service offered by most banks and credit unions that requires a Personal Identification Number (PIN) to check account balances, make cash withdrawals and deposits, and move money from one account to another.
electronic funds tranfer
electronic financial transitioning
automated teller machine
also called a check card, allows you to make purchases by swiping your card through a point of sale(POS) terminal that is usually located at the merchant’s checkout counter
debit card
credit card
ATM card
a check written for an amount greater than the balance of the account
overdraft
overspend
fraud
a written order for the bank to pay a specific amount to a person whom the item is written
check
money order
deposit slip
