Chapter 8

An easy way to avoid ending up with errors in your checking account is to simply...

Monitor you account at least twice a week

Make sure your bank has plenty of ______ and ______.

ATM locations; a mobile banking app

Overdraft protection sounds like a good idea...

But you have to pay back the deposited money with interest

You need to track everything that involves money, including...

Debit card purchases, third-party app transactions, and ATM withdrawals

You should avoid any bank service that leads to...

Debt

Banks invest their customers' deposited money and then...

Earn interest, paying the customer a small amount of interest on their accounts

Your emergency fund should go in your checking account, NOT a money market account.

False

Liquidity is...

How quickly and easily you can access your money

If you see "pending" on an account charge, that means...

It hasn't been fully processed yet

Distrust, unemployment, and bank fees are a few excuses people give for...

Not having a savings or checking account

Verifying your bank's online account statements for accuracy is called ____________.

Reconciling your account

What does it mean to be blacklisted by a bank?

The bank doesn't allow you to open an account because you handled money poorly in the past and couldn't pass their financial background check.

Balancing your checking account is a lot like working on your budget because...

They both get easier and build money confidence the more you do them

A debit card linked with your checking account is a good option for regular spending.

True

It's your responsibility to know about all of the _______ before choosing a bank.

Fees and services involved

With online banks, all of your deposits, transfers, and bill payments happen digitally, but...

It's often more difficult to get in touch with a real person when you need assistance

When deciding on the right bank for you, you should first identify what type of bank you want, the features that matter most to you, and ____________.

What kind of accounts you want

The Federal Deposit Insurance Corporation (FDIC) and National Credit Union Administration (NCUA) keep your money in the bank insured up to ______ per account.

250,000

A debit card, ATM access, payroll direct deposit, and checks are basic features of ___________.

A checking account

If you prefer great customer service and lower fees...

A small, local bank is often a great option

A savings account is for ___________.

Long-term savings goals

A bank can help you _____ your money and keep it _____.

Manage; safe

Some of the services banks offer include...

Mortgages, check writing, and debit cards

People who are struggling with money often turn to alternative financial services like payday loans, but these services actually end up causing them to lose money.

True

Credit Unions differ from retail banks in that they typically require membership based on specific criteria.

True

If you see a charge you don't recognize, you should report it to your bank immediately.

True

Overdrafting your account is a sign of diligence and responsibility.

True

With certificates of deposit (CDs), you have to pay a penalty for ____________.

Withdrawing your money early

Something that all of the predatory financial services have in common is...

You end up losing money with all of them

As the owner of your account, managing your money is ______ responsibility.

Your