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WorksheetsChecking Test
Total questions: 41
Worksheet time: 54mins
Two benefits of having a checking account are safety and convenience. Which of the following statements is FALSE?
If you have a checking account, you won't need to carry as much cash with you
With a checking account, you have several options for how to pay bills
In order to shop online, you must use a debit card
You can cash checks for free when you cash your paycheck at your bank
Hailey's bank is FDIC Insured. What is the benefit to Hailey?
She can use her bank card at any bank, nationwide, without incurring a fee
If Wanda’s bank goes out of business, she will receive all of her money back from her accounts up to $250,000
She will receive a debit card and a checkbook she can use to make purchases
If she makes a purchase with her debit card and the item breaks, she’ll get a full refund
It's Thursday, and Eileen has $200 in her checking account. Her rent of $650 is due tomorrow. Fortunately, she receives her paycheck from work for $1300 at the end of today’s workday. Why MIGHT Eileen choose to cash her check at the check casher instead of depositing it into her bank account?
Banks are known to lose people's money, frequently, and she shouldn't take that chance
If Eileen's landlord wants to be paid in cash, it's not possible to get cash at the bank -- the check casher is her only option
It can take a few days for Eileen's check to "clear" at her bank; in that time, her check to the landlord might bounce
Depositing a check at a bank typically costs $10 or more; the check casher will be more cost effective
Orrin had $541.06 in his checking account, and a check that he wrote to his landlord for $560.00 was just deposited. This will result in which of the following fees?
Overdraft Fees
Service Fees
ATM Fees
Check Fees
Commercial banks, such as Wells Fargo and Sun Trust, have which type of insurance for banking customers?
SIPC, up to $250,000
NCUA, up to $250,000
NAACP, up to $250,000
FDIC, up to $250,000
What is her total deposit?
Always use permanent ink when writing a check.
True
False
Writing the dollar amount in both numbers and words makes your check more secure.
True
False
Katie goes to the bank. She takes money out of her account. Katie has made a
Deposit
Withdrawal
What is wrong with this check?
Name is incomplete
Check amount is not written out
Signature issues
Date issues
Which term from your bank statement represents the amount of money you have in your account at a given point?
Balance
Deposit
Reference number
Withdrawal
Each of these is a way to get money INTO your checking account EXCEPT...
Do a mobile check deposit
Send cash in the mail to the bank
Do an electronic transfer from another account
Deposit a check through an ATM
What is an overdraft fee?
Fee for writing a check
Fee for using out-of-network ATM
Fee for withdrawing more money than you have in your account
Fee for going below your minimum balance requirement
Why is it a good idea to set up mobile alerts for your checking account?
If you enable them, your bank can no longer charge fees
The warnings might alert you in time to prevent your making costly mistakes
You won’t need to review your bank statements anymore
The alerts will transfer extra money into your account to prevent you from overdrawing
Fill in the blanks: Direct deposit typically refers to your ___________ sending your _______ electronically to your bank account.
employer, bills
parents, allowance
credit card company, bills
employer, paycheck
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
Sarah 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
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
How often do customers typically receive a bank statement for their checking account?
Daily
Weekly
Monthly
Annually
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 turned down 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
A person-to-person payment app could be used in each of the following scenarios EXCEPT...
Tina pays her neighbor $200 for breaking his window with a softball
Rafael writes a check to cover the entire month’s rent, and his roommates Valerie and Carlos pay Rafael for their share of the monthly rent
Ahmed'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
Mia pays Randy the delivery driver from Cheesy Pizza Co. for a pizza she orders for her Spanish study group
Which of the following is NOT a common way most people are using P2P?
To pay rent
To pay off their credit cards
To pay back friends
To buy gifts
Which of the following is FALSE about check registers?
It can help you identify mistakes in your bank statement
It can help you avoid writing checks that cause an overdraft
You can submit them to the bank and verify each transaction
You know exactly how much money you have left to spend
Which action below is considered a best-practice for check writing?
Using a pencil so that you can quickly erase any errors without having to throw any checks away
Recording all of your transactions in a check register
Leaving the “to” field blank until the very last minute, so that no one else can steal the check
Writing quite sloppily in each field so that no one else can forge your handwriting
Which best describes the difference between a checking statement and a checking agreement?
A statement shows you all of the deposits and withdrawals from your account, and an agreement shows you the terms of the account, such as fee structure and minimum requirements
A statement shows you the terms of the account, such as fee structure and minimum requirements, and an agreement shows you all of the deposits and withdrawals from your account
A statement can be downloaded from your online banking account, while an agreement must be obtained in person at a bank branch
A statement must be obtained in person at a bank branch, while an agreement can be downloaded from your online banking account
Which of the following transactions may NOT be reflected on your account balance if you go online to check your balances?
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
Why is it so important to have a checking account?
Without a checking account, you are unable to cash your paycheck or pay your taxes
A checking account facilitates the rest of financial life by making your money available when and where you need it while also keeping it safe
Opening a checking account is the only way to gain access to a savings account, which is essential if you want to make money by investing
Opening a checking account is the first step in building your credit history, which you will need in order to receive loans, scholarships, and grants for college
