FINAL REVIEW CHECK IN

Transcription

1 FINAL REVIEW CHECK IN b 1. Pete sets aside $50 each month from his earnings to have money for a car down payment. Of the following choices, what is the best way for him to store the money each month until he meets his goal for a down payment? [Competencies 5-1, 5-5] a. Keep the money in a good hiding place at home so it doesn t get stolen. b. Deposit the money into his savings account. [This is the best choice because the money is protected by insurance, the account will grow by earning interest, the money can be withdrawn on demand, and it is less likely that Pete will be tempted to use the money for another purchase.] c. Deposit the money into his checking account. d. Purchase another share of his favorite stock. d 2. What is one benefit to using a checking account that is not a benefit of using a savings account? [Competency 5-1] a. interest earned b. insured deposits c. electronic deposits and withdrawals d. proof of payment d 3. After you write and sign your check, who can legally cash the check? [Competency 5-1] a. you and the payee b. the bank or credit union and the payee c. any family member of the payee d. only the payee c 4. Who is responsible for confirming your bank account balance? [Competency 5-1] a. the stores where you made the purchases from the account b. your bank or credit union c. you d. the debit card company

2 d 5. You have searched everywhere for your debit card. You think it may have been stolen. Of the following actions, what is the best thing to do now? [Competencies 5-3, 5-5] a. Wait at least 90 days to report the card as missing or stolen in case you find the card. b. File a report with the Federal Trade Commission. c. Close your bank account. d. Notify the company that issued your card. c 6. You can do all of the following with online banking except which of the following banking actions? [Competency 5-2] a. Check your account balance. b. Deposit a paycheck to your account. c. Buy concert tickets. d. Receive alerts when your account information has been changed. a 7. You can do all of the following with mobile banking except which of the following banking actions? [Competency 5-2] a. Get $40 cash from your account. b. Deposit a paycheck to your account. c. Receive alerts when your account information has been changed. d. Transfer money from your account to someone else s account. d 8. You can do all of the following at an ATM except which of the following banking actions? [Competency 5-2] a. Check your account balance. b. Get $40 cash from your account. c. Deposit a paycheck to your account. d. Transfer money from your account to someone else s account. a 9. Which of the following would be a good reason to use online banking? [Competencies 5-2, 5-5] a. A college student attends school out of state in Minnesota but her bank is in Colorado. b. Your online accounts will earn more interest than your other accounts. c. You won t have any fees. d. You have trouble keeping track of check payment transactions.

3 d 10. What is an advantage of electronic funds transfer (EFT)? [Competencies 5-2, 5-5] a. You earn more interest on an EFT account than a checking account. b. The number of withdrawals from an EFT account is limited so you are not tempted to impulsively use the money. c. This is the best way to always keep your personal and financial information secure. d. Your paycheck can be deposited directly to your checking account. b 11. If you suspect that someone may know your online banking login information, what can you do to prevent unauthorized access to your bank account? [Competency 5-3] a. Stop using your account(s) to see if there is any activity that you did not authorize. b. Change your login password(s). c. Immediately call the Federal Trade Commission. d. Get a new photo ID. a 12. Who has primary responsibility for verifying information on your bank statement to detect any fraud or errors? [Competencies 5-3, 5-4] a. You b. The businesses where you made payments by debit card or check c. Any of the three credit reporting companies d. Your bank or credit union where you have the account c 13. You received a text message from your favorite music store. The message says, We are offering a special half-price-off sale for our frequent customers. When you return the message, you are told that you can only get the discount if you order by phone. You have been thinking about buying speakers, and this is a good deal to cut down on the cost. Of the following, which is the best action you should take? [Competencies 5-3, 5-4] a. Make the call and be prepared to place the order using your debit card for payment. b. Make the call to place the order only if you can pay when you receive an invoice. c. Use the phone number from a previous sales slip or other trusted source to call the company to confirm the sale information. d. Place the order, and give the caller contact information for one of your friends so your friend can also take advantage of the sale.

4 b 14. As you scroll through your recent messages, you are alarmed to see a message that your debit card is no longer valid. The message includes a web link where you can confirm information to reactivate your card. This may be an instance where you have been a victim of... [Competency 5-3] a. freeware b. phishing c. spam d. spyware True/False: Read each statement carefully. Show whether the statement is True (T) or False (F) by writing either T or F in the blank space. F 16. If you fill out your check clearly and completely, a sales clerk must accept your check for payment. [Competency 5-1] Businesses are not required to accept checks and may decide to not accept the risk of accepting check payments. F 17. If you write the wrong payee name while writing a check, it s OK to neatly cross out the wrong information and add the correct name in your own handwriting. [Competency 5-1] The bank may question the validity of the check if the payee name has been changed. In this case it is best to void the check and fill out a different check for payment. T 18. When you use a debit card, you give your bank permission to immediately remove money from your bank account. [Competency 5-1] F 19. You can replace a lost unused gift card by requesting a replacement card from the same business. [Competency 5-1] T 20. Credit unions and banks provide the same types of financial services. [Competency 5-4] Short Answer: Read each item carefully; then write an answer based on what you learned about financial services in Module 5: Financial Services. 21. What is the difference between a checking account debit card and a gift card? [2 points] [Competency 5-1] Examples of possible responses: When a debit card is used to make a purchase, money is deducted from person s bank account. A gift card is not linked to a bank account and is preloaded with a set amount of funds. 22. What are strategies you can use to protect your financial information and bank account funds when you use each of the following types of financial services? [Competency 5 3] Savings Account Debit Card ATM Online Banking Keep account number and information in a safe place, review statements at least once a month to verify transaction details, report inaccurate or Keep account number and information in a safe place, don t share PIN, review account statements for inaccurate reporting or unauthorized transactions, report Conduct business at trusted ATM sites, position body so other people are unable to observe PIN entry, cover the keypad when entering PIN, inspect Keep account number and information in a safe place, ensure the website is secure before logging into personal accounts especially over public networks, verify account

5 unauthorized transactions. unauthorized uses immediately. the ATM machine for any possible tampering. transaction details, install software (i.e. firewall, antivirus, antispyware) to protect against unauthorized access to your online information, use a unique strong password for accounts, occasionally change passwords. 23. Kim just graduated from high school. Next fall she ll live in the dorms while attending a college in another state. Rather than move her bank accounts to her new location, what three financial services do you recommend she use while attending school, and why? [Competencies 5-2, 5-4] Award 1 point for each response and 1 point for each reasonable, accurate explanation. Examples are provided; consider accepting alternative choices based on class study and discussion. What Debit card Online banking services Mobile banking Why? Convenient way to access checking a count. Out-of-town/state checks might not be accepted for payment. Convenient way for Kim to access and monitor her checking and savings accounts at any time, especially to transfer funds between accounts, arrange for auto deposit of any paychecks, and handle online payments. Convenient way for Kim to access and monitor her checking and savings accounts at any time, especially to transfer funds between accounts, handle online payments, deposit checks (via photos of checks), and receive text message alerts about her account activity.

6 24. Kim s brother is getting married next December, and the wedding festivities will take place at a resort in Florida. What do you think is a wise way for Kim to pay for each of the following wedding-related expenses? In the chart below, put a check ( ) under the recommended method of payment along with a reason for the recommendation. [Competencies 5-1, 5-2, 5-4] Award 1 point for each response with a reasonable, accurate explanation. Examples are provided; consider accepting alternative choices based on class study and discussion. Expense Cash Debit Card Credit Card Reason for Choice Plane Ticket (either) Big ticket item, able to conveniently make an online purchase. Wedding Gift (either) Not a major purchase. Meals during the trip (either) Avoid charging for small amounts that do not provide longterm satisfaction. If using a debit card rather than carrying cash, be wary of unauthorized card transactions. Taxi to/from the hotel (either) Same as above. Aiden s Partial Spreadsheet (recent transactions) Ck/Code Date Description Cleared Payment Deposit Balance Correction D 1/26 Deposit (BD money) Debit cd 1/27 Redbox /27 University Auto Insurance * D 1/28 Deposit (dog sitting) Debit cd 1/28 Speedy Gas EFT 1/30 Mutual Fund contribution *D 1/31 Interest

7 Statement Community State Bank Aiden Moola January 31 Somewhere USA Account # Beginning balance on January 1 Deposits and other subtractions Checks paid and other subtractions Ending balance on January 31 $ $ $ $ Cleared Payments: 1/28 Check card Redbox 1/29 Check card Speedy Gas 1/30 Check Cleared Deposits: 1/27 Deposit 1/28 Deposit 1/31 Interest