Untitled Quiz

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Questions and Answers

Where does the money come from when using a credit card?

It is deducted from your checking account.

What is a situation that person to person (p2p) payments would be used?

To repay a family member.

If a person gets paid on the 1st but needs to pay bills on the 3rd of the month, what should they do to ensure they have enough money in their account?

What should you do if you have not been drawing money out of your bank account but multiple withdrawals are occurring?

Contact your bank immediately, you might have been hacked. Signup and view all the answers

What type of card does not access money in your checking account?

A prepaid card. Signup and view all the answers

If you need to pay a bill to a place that is over 30 mins away from you, what would make the most sense to do?

Use online automatic bill pay. Signup and view all the answers

What kind of card spends money directly from your bank account?

Using your debit card. Signup and view all the answers

What are the most convenient features of using online and mobile banking?

You can request transfers, bill pay, automatic savings, and others without visiting the bank. Signup and view all the answers

What should you do with all of your checking transactions?

Record them in a check register. Signup and view all the answers

If you have overdraft protection on your bank account and you spend more money than you have then what happens?

You will be charged a fee for each transaction and need to pay the bank back the overdrawn amount too. Signup and view all the answers

How are banks and credit unions different?

Banks are owned by shareholders while credit unions are owned by members. Signup and view all the answers

Using a digital wallet payment like Apple Pay or Samsung Pay is considered safe because?

You do not need to hand a card over to a cashier so your personal info is private. Signup and view all the answers

What type of transaction may not immediately go through on your bank account?

A check you mailed to a family member. Signup and view all the answers

If you are opening a bank account and can only ask one question, what should it be?

What is your schedule of fees? Signup and view all the answers

The largest source of fees for banks when it comes to checking accounts is?

Overdraft fees. Signup and view all the answers

How does a low balance mobile alert on your checking account work?

It alerts you when your balance falls below a certain amount and you will know when to stop spending money. Signup and view all the answers

What is the difference between a checking statement and a checking agreement?

A statement is all your deposits and withdrawals from your account but an agreement shows you the terms for the account like fee structure and minimum requirements. Signup and view all the answers

If you do not have overdraft protection and try to spend more money than you have in your bank account, what happens?

Because you said no, your transactions will be decline if you cannot cover them. Signup and view all the answers

Why is it important to have a checking account?

Keeps your money safe and easily accessible. Signup and view all the answers

What do check cashing businesses do?

They allow customers to quickly get access to their cash for a small fee. Signup and view all the answers

Why would a bank representative seem pushy about getting overdraft protection set up?

Banks make money by charging overdraft fees. Signup and view all the answers

Why would someone who has access to a checking account still decide to sometimes use prepaid cards?

Prepaid cards allow you to spend money but not lose track of your spending and overspend. Signup and view all the answers

If you are going to be moving around the country what is the best option for opening a checking account and still be able to access it?

Open an account at a large national bank with many locations. Signup and view all the answers

What is a good habit to have for protecting your online bank account information?

Create complex passwords that combine letters, numbers and symbols. Signup and view all the answers

Flashcards

Credit Card Funding

Credit card transactions are not immediately funded from a checking account; they are essentially loans that use your credit limit.

P2P Payment Example

Person-to-person payments are used for transactions between individuals, such as repaying a family member.

Ensuring Sufficient Funds

To avoid insufficient funds when bills are due before payday, set up direct deposit to have funds available in your account.

Unauthorized Withdrawals

Facing unexpected withdrawals from your account without your authorization requires immediate contact with your bank to investigate the possibility of unauthorized access.