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Unit 1 Test - Banking

Total questions: 12

Worksheet time: 6mins

Name
Class
Date
1.

Tammy gets paid on the 1st of each month, but her paycheck takes a few days to clear. She needs to pay for a school trip by the 3rd of each month. More than one late payment means she can't go on the trip. What should Tammy do?

a)

Sign up for direct deposit with her employer so that the money is already in her account the morning of the 1st

b)

Use her 15-minute break during work on the 1st of each month to run to the check cashing business; hopefully she doesn’t get delayed by long lines and return to work late, which will anger her boss

c)

Deposit the check through her mobile app on the 1st of the month and do a cash withdrawal from the ATM each month on the 2nd; hopefully the check clears in time to avoid fees

d)

Sign up for overdraft protection, withdraw the money from an ATM regardless of whether the funds are there in time, and just pay the $35 overdraft fee

2.

Jocelyn gets a bank alert that her account is below $50. She hasn't spent money recently. What should she do?

a)

Check her wallet to see if her debit card is missing. If she has it, she shouldn't worry.

b)

Wait a week for the bank to fix any mistakes.

c)

Contact her bank immediately to check for fraud.

d)

Wait for her monthly statement to review withdrawals.

3.

Devon's rent is due on the first of each month. The renters office is 45 minutes away in downtown Houston. Which payment option is most efficient for Devon?

a)

Hand-deliver cash

b)

Set up a text alert reminder to write and mail a check by the 28th of the previous month

c)

Ask his employer to set up direct deposit

d)

Use online recurring bill pay

4.

Which action will immediately reduce your checking account balance?

a)

Depositing a check using your mobile app.

b)

Using your debit card to pay for new fishing gear

c)

Writing your monthly rent check to mail tomorrow

d)

Using your credit card to pay for groceries

5.

You have $8 in your account and use your debit card to buy items totaling more than your balance. You answered "YES" to overdraft protection when signing up for your account. What will happen?

a)

Your account would be closed

b)

The bank will provide you five days to add funds to your account to cover the overdraft and no fees will be assessed

c)

Because you requested overdraft protection, the bank will not allow you to overdraw your account, so your debit card will be denied

d)

Your account is linked to your savings account and the bank will transfer money to cover the costs while you also pay a transfer fee.

6.

Which best describes the difference between a checking statement and a checking agreement?

a)

A statement shows all deposits and withdrawals, and an agreement shows the account terms like fees and requirements

b)

A statement shows the account terms like fees and requirements, and an agreement shows all deposits and withdrawals

c)

A statement can be downloaded online, while an agreement must be obtained in person

d)

A statement must be obtained in person, while an agreement can be downloaded online

7.

You have $8 in your account and you chose not to have overdraft protection. You try to make three purchases totaling more than your balance. What happens?

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)

c)

The bank will not allow you to overdraw your account so your card will be denied in these 3 instances

d)

Your account is linked to your savings account and the bank will transfer money to cover the costs while you also pay a transfer fee.

8.

Which habit helps keep your checking account safe?

a)

Carry your online banking username and password in your purse or wallet

b)

Create complex passwords with letters, numbers, and symbols

c)

Use the same username and password for easy remembering

d)

Share login information with friends and family for emergencies

9.

Which savings option is best for someone who doesn't need access to their money for years and wants the highest interest rate?

a)

Regular savings account

b)

Money Market account

c)

Checking account

d)

Certificate of Deposit

10.

Grace wants to open a savings account. What are the most important factors she should consider?

a)

The fees, the interest rates, and the minimum deposit to open the account

b)

The fees, the interest rates, and the bank’s brand recognition

c)

The fees, which bank your friend uses, and the minimum deposit to open the account

d)

The fees, which bank your friend uses, and the bank’s brand recognition

11.

Which is the best way for Aria to save money?

a)

Save whatever is left at the end of the month

b)

Save a set percentage of each paycheck directly in a savings account

c)

Spend on wants and needs, then save what's left

d)

Take a payday loan to save before getting paid

12.

According to the 50-30-20 budgeting rule, what percentage of income is saved each month?

a)

20%

b)

30%

c)

50%

d)

100%