TEST YOUR KNOWLEDGE
LESSON 2: IN THE AFTERMATH
A
B
C
Lesson 2: In the Aftermath
QUESTION 1
A DEPOSIT ACCOUNT THAT OFFERS EASY ACCESS TO YOUR MONEY,
OFFERS THE OPTION TO PAY BILLS ONLINE OR BY ELECTRONIC
TRANSFER, AND OFFERS THE OPTION TO MAKE PURCHASES WITH AN
ATM OR DEBIT CARD IS CALLED:
A
• A checking account
• A savings account
• A money market account
Lesson 2: In the Aftermath
QUESTION 2
A DEPOSIT ACCOUNT THAT PAYS INTEREST ON DEPOSITS, ALLOWS
WITHDRAWALS AND TRANSFERS WITH AN ATM CARD, DOES NOT OFFER
THE OPTION OF BILL PAYMENT OR PURCHASES, AND MAY HAVE A
MINIMUM DEPOSIT REQUIREMENT IS CALLED:
A
• A money market account
B
• A savings account
C
• A certificate of deposit
Lesson 2: In the Aftermath
QUESTION 3
A DEPOSIT ACCOUNT THAT REQUIRES DEPOSITED FUNDS TO REMAIN IN
THE ACCOUNT FOR A FIXED AMOUNT OF TIME, IMPOSES PENALTY FEES
FOR EARLY WITHDRAWAL, AND GENERALLY PAYS HIGHER INTEREST RATES
THAN OTHER DEPOSIT ACCOUNTS IS CALLED:
A
• A savings account
B
• A certificate of deposit
C
• A money market account
Lesson 2: In the Aftermath
QUESTION 4
A DEPOSIT ACCOUNT THAT PAYS HIGHER INTEREST ON DEPOSITS THAN
OTHER ACCOUNTS, GENERALLY HAS A MINIMUM BALANCE
REQUIREMENT, AND ALLOWS A VERY LIMITED NUMBER OF
TRANSACTIONS EACH MONTH IS CALLED:
A
• A checking account
B
• A money market account
C
• A certificate of deposit
Lesson 2: In the Aftermath
QUESTION 5
EXAMPLES OF TRADITIONAL FINANCIAL INSTITUTIONS INCLUDE:
A
• Commercial banks and
credit unions
B
• Commercial banks and
finance companies
C
• Payday lenders and checkcashing outlets
Lesson 2: In the Aftermath
QUESTION 6
WHICH OF THE FOLLOWING ITEMS IS A POTENTIAL NEGATIVE
CONSEQUENCE OF PLACING MONEY IN A CERTIFICATE OF DEPOSIT?
A
• Earns lower interest than a
savings account
B
• Has a limited number of
monthly transactions
C
• Penalties are charged for early
withdrawals of funds
Lesson 2: In the Aftermath
QUESTION 7
WHEN CHOOSING A FINANCIAL INSTITUTION, YOU SHOULD
CONSIDER:
A
• Access to locations, ATMs,
and services to meet your
financial needs
B
• Fees charged for overdrafts
and other penalties
C
• The likelihood of the bank
failing
Lesson 2: In the Aftermath
QUESTION 8
A CHECK:
A
• Directs your financial institution to
transfer money from your account to
another person’s or business’s
account.
B
• Can be converted to an electronic debit
by the recipient by using the digits in
the MICR line.
C
• Both of the above
Lesson 2: In the Aftermath
QUESTION 9
AN OVERDRAFT OCCURS:
A
• When you write more than the
allowed number of checks during a
single month.
B
• When your savings account balance
falls below the minimum amount
required by the rules of the
account.
C
• When a check is cashed or a debit is
processed against an account that
does not have sufficient funds to
cover the transaction.
Lesson 2: In the Aftermath
QUESTION 10
DIRECT DEPOSIT:
A
• Is available only to customers
with checking accounts.
B
• Can be accomplished by transferring
funds from your savings to your
checking account using an ATM.
C
• Is a convenience that allows
recipients of a direct deposit to
have same-day access to deposited
funds.
Lesson 2: In the Aftermath
THANK YOU FOR
PARTICIPATING IN “TEST
YOUR KNOWLEDGE”