Basics Beginner: Managing Your Money at a Bank or Credit Union

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Choose wisely. There is only one correct answer to each question.

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1.
When opening a new account at a bank or credit union, which type of account is more appropriate if you are paying bills and making purchases?
Choose wisely. There is only one correct answer.
Checking account. Checking accounts are designed for spending money, such as bills.
2.
You can deposit checks into an account in your name at a check cashing store.
Choose wisely. There is only one correct answer.
False. You do not have an insured deposit account at a check cashing store.
3.
An overdraft fee occurs when your checking account withdrawals ________.
Choose wisely. There is only one correct answer.
Bring your account balance below zero. Your account is overdrawn when your balance goes below zero. It doesn't matter how many transactions you complete in the month or how much you deposit. It is based solely on your balance at the end of each business day.
4.
Common uses for a savings account include _______.
Choose wisely. There is only one correct answer.
Short-term savings goals. Savings accounts are very safe, pay a low rate of interest, and allow you to access your money at any time.
5.
If you deposit a check from someone and it turns out that the check was bad, you might have to pay a fee because of it.
Choose wisely. There is only one correct answer.
True. Many institutions charge a returned check fee when this happens. You are being penalized for someone else's irresponsible behavior.
6.
Why might you transfer money from one of your online accounts to another?
Choose wisely. There is only one correct answer.
All of the above are reasons why. All of these are good reasons to transfer money between accounts.
7.
Suppose your balance at the end of the month in your check register is $98. Let's say you would like to have a little more of a cushion and would like your balance to be at least $200 at the end of the month. What are your options for accomplishing this?
Choose wisely. There is only one correct answer.
All of the above. Reducing your expenses is all about making choices. What tradeoffs are you willing to make to free up additional savings dollars?
8.
When it comes to borrowing money to buy a home or car, it is an advantage to belong to a bank or credit union.
Choose wisely. There is only one correct answer.
True. When you have a relationship with a bank or credit union, you might qualify for a lower interest rate. You would also get convenience and service.