WorksheetsBanking Services: Checking Unit Review
Total questions: 30
Worksheet time: 23mins
Name
Class
Date
1.
1. 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?
a)
Your credit card company covers the cost
b)
It is deducted directly from your checking account
c)
Your credit card company provides you with a cash advance to cover the cost
d)
It is deducted from your credit card account
2.
2. 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?
a)
Wait until your monthly statement arrives so you can check to see if those withdrawals are still there
b)
Wait a week as it is fairly common for the bank to catch mistakes like this
c)
Check your wallet to be sure your debit card has not been stolen. If you still have it, then you should not worry.
d)
Contact your bank immediately as it appears that your account may have been hacked
3.
3. Which of the following is a way to access the money in your checking account?
a)
Taking out cash using your credit card at an ATM machine
b)
Using your debit card to pay for groceries at the checkout
c)
Depositing a paycheck at an ATM
d)
Receiving a person-to-person payment from your friend
4.
4. 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?
a)
Available immediately
b)
Available the same day
c)
Usually 1-7 business days later
d)
30 business days
5.
5. Which of the following transactions will REDUCE your checking account balance immediately?
a)
Writing your monthly rent check which you will mail tomorrow
b)
Using your debit card to pay for groceries at the supermarket
c)
Using your credit card to pay for your school books
d)
Depositing a check at a local bank branch
6.
6. Which TWO of the following statements are advantages of online banking?
a)
A & B
b)
B & C
c)
B & D
d)
A & C
7.
7. FDIC Insurance is...
a)
Optional coverage consumers can purchase so that their bank deposits remain safe.
b)
Insurance bank branches can buy to protect their business against fraud and scams.
c)
Required if you want to do online or mobile banking.
d)
Protection for bank customers’ deposits up to $250,000, guaranteeing their money is still available if the bank goes out of business.
8.
8. 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?
a)
Your account would be closed
b)
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 ($29)
c)
Since you requested overdraft protection, the bank will not allow you to overdraw your account so your debit card will be denied
d)
The bank will provide you five days to add funds to your account to cover the overdraft and no fees will be assessed
9.
9. How often do customers typically receive a bank statement for their checking account?
a)
Daily
b)
Weekly
c)
Monthly
d)
Annually
10.
10. Which of the following transactions may be missing when you go online to review your checking account balance?
a)
ATM cash withdrawal from yesterday
b)
Check that you mailed to your cousin for his birthday today
c)
Automatic payment for your car loan paid two days ago
d)
Debit card transaction from purchasing snacks at a local convenience store today
11.
11. The largest source of fees for banks when it comes to checking accounts is...
a)
Overdraft fees
b)
Wire transfer fees
c)
Check printing fees
d)
Interest expense
12.
12. While opening your checking account, the bank representative seems very interested in getting you to opt in for overdraft protection. What might explain his motivation?
a)
He wants to minimize the fees you might pay to the bank
b)
He is required by law to sign you up for overdraft protection
c)
He knows that once you decide to opt into overdraft protection, you cannot opt out
d)
He may be receiving a sales commission for every customer who opts in to get overdraft protection
13.
13. Jillian is a high school student who typically earns $275 every two weeks at her part-time job. She is responsible for paying her own cell phone bill, gas when she drives her mom’s car, and costs of going out with friends. She wants to set a low balance alert. What amount probably makes the most sense for Jillian?
a)
$5
b)
$50
c)
$500
d)
$5000
14.
14. Which of the following is TRUE about checking accounts?
a)
They must pay an interest rate of at least 1% annually
b)
Banks cannot change the fee policies on your account while it is open
c)
Banks can only change the fee policies on your account once per year, between Jan 1 and Jan 31st
d)
Banks can change the fee policies as long as they put the changes in writing and notify you
15.
15. 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?
a)
Your account will be closed
b)
You will likely be charged an overdraft fee for EACH transaction and need to repay the bank the funds overdrawn ($29) + interest
c)
Since you turned down overdraft protection, the bank will not allow you to overdraw your account so your card will be denied in these 3 instances
d)
The bank will provide you with five days to add funds to your account to cover the overdraft but will not charge you any fees
16.
16. A person-to-person payment app could be used in each of the following scenarios EXCEPT...
a)
Tina pays her neighbor $200 for breaking his window with a softball.
b)
Rafael writes the whole monthly rent check to the landlord, and his roommates Valerie and Carlos pay Rafael for their share of the monthly rent.
c)
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.
d)
Mia pays Randy the delivery driver from Cheesy Pizza Co. for a pizza she orders for her Spanish study group.
17.
17. If you are trying to protect your checking account information, it is dangerous to…
a)
Carry the PIN number for your debit card with you in your purse, wallet, or backpack.
b)
Shred documents that have your account number on them.
c)
Check your ATM and debit card transactions on a frequent basis.
d)
Shop on secured websites when entering in your account information online.
18.
18. What is the mathematical formula that you would use to describe the financial activity on a bank statement?
a)
Ending Balance = Previous Balance + Deposits + Withdrawals + Fees
b)
Ending Balance = Previous Balance - Deposits + Withdrawals - Fees
c)
Ending Balance = Previous Balance + Deposits - Withdrawals - Fees
d)
Ending Balance = Previous Balance - Deposits - Withdrawals + Fees
19.
19. Mia 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?
a)
Jordan says, "With overdraft protection, you never have to worry about how much money is in your account."
b)
Donnie 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."
c)
Frank 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."
d)
Alex 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."
20.
20. If you are using a digital wallet at a store at the mall, to pay for your purchase you are likely...
a)
Sending a person-to-person payment to the cashier
b)
Inserting your chipped credit card into the credit card reader
c)
Holding your phone close to the point-of-sale machine
d)
Sending an online payment from your computer once you get home
21.
21. You are a customer with an Everyday Checking Account. Indicate which statement below about your account is TRUE.
a)
If you are between 17 and 24, you will not pay a monthly service fee
b)
Your monthly service fee is waived if you have at least $1,500 as a daily balance
c)
You are earning interest on this account
d)
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
22.
22. Fill in the blanks: Direct deposit typically refers to your ______ sending your ______ electronically to your bank account.
a)
employer, bills
b)
employer, paycheck
c)
parents, allowance
d)
state government, taxes
23.
23. Which is an advantage of paying your bills using the online bill pay feature with your checking account?
a)
The company you are paying receives the money on the same day.
b)
There is typically only a small fee to set-up and use this feature.
c)
It saves time and paper.
d)
It eliminates late fees.
24.
24. Which of the following is a TRUE statement about check cashing stores?
a)
Their checking accounts typically cost less than traditional bank accounts
b)
They tend to charge consumers a lot of hidden fees
c)
Customers use check cashing stores even though the employees are unfriendly and often make customers feel embarrassed or out-of-place
d)
They make their money by charging fees for transactions that can be done for free by customers with a traditional checking account
25.
25. What is the most important question you should have after seeing this ad about a check cashing business?
a)
How many locations do you have?
b)
Can I get a written copy of all of the fees that you charge for your services?
c)
What are your hours of operation?
d)
How many tellers do you have?
26.
26. When comparing checking accounts, interest earned on the account is the most important factor. Agree or disagree with this statement. Explain.
4 lines
27.
28. What are two ways you can deposit money into your account and two ways you can withdraw money from your account (four answers total)?
4 lines
28.
29. Name two reasons why it is important to check your bank statements on a regular basis.
4 lines
29.
30. Identify two fees that banks typically charge on a checking account and how you can avoid them.
4 lines
30.
27. Your friend says it’s a bad idea to have a checking account because of all the fees. Make a persuasive argument about the benefits of having a checking account.
4 lines
100 %
