Multiple Choice
Identify the
choice that best completes the statement or answers the question.
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1.
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Electronic funds transfer (EFT) refers to…
a. | the agency that insures deposits in banks. | b. | the movement of
funds by electronic means. | c. | the secret code for your
accounts. | d. | using an ATM. |
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2.
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Paying by electronically transferring funds at the place of purchase is called
a(n)…
a. | automatic loan payment. | c. | direct deposit. | b. | debit
card. | d. | point-of-sale
transaction. |
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3.
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A PIN is a code that is concerned with the…
a. | amount in your account. | c. | flexibility of your
account. | b. | balance of your account. | d. | security of your account. |
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4.
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At your request, banks can automatically perform all of the following services
EXCEPT…
a. | debit card advances. | c. | loan payments. | b. | direct deposits. | d. | transfers between
accounts. |
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5.
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If your ATM card is lost, you should…
a. | cancel the last purchase made with the card. | b. | move your accounts
to another financial institution. | c. | notify the Federal Reserve System within 24
hours. | d. | report the loss to the issuing bank. |
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6.
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You can deduct money from your bank account to make a purchase by use of
a…
a. | charge card. | c. | debit card. | b. | credit card. | d. | telephone card. |
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7.
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All of the following will most likely happen if you write an overdraft
EXCEPT…
a. | The unpaid check will be returned to the payee’s bank. | b. | You and the payee
will be charged substantial fees by your banks. | c. | The payee, if a business, will charge you a fee
for a bounced check. | d. | You will be arrested for writing a bad
check. |
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8.
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Writing a check is more secure than paying with cash because…
a. | a check is usable only by the payee. | b. | some bills cannot be paid with
cash. | c. | you can keep a record of the transaction. | d. | you can void a
check. |
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9.
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To receive favorable banking terms or avoid a penalty, you may need
to…
a. | apply for a credit card from the bank. | c. | make all transactions in
person. | b. | maintain a minimum balance. | d. | use automatic funds transfers. |
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10.
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If you make a mistake writing a check, you should…
a. | bounce the check. | c. | reconcile the check. | b. | cancel the check. | d. | void the check. |
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11.
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If you cannot reconcile your bank statement’s ending balance with your
checkbook balance, you should do all of the following EXCEPT…
a. | check the amount of the discrepancy in case you’ve overlooked an outstanding
check or debit in that amount. | b. | double-check your math on the statement and in
your checkbook register. | c. | look for the error when you receive the
following month’s statement. | d. | take your records to the bank for
assistance. |
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12.
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A written order that instructs a bank to pay a specific amount of money to a
particular person or business is called a…
a. | bill. | c. | deposit. | b. | check. | d. | transaction. |
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