Personal Finance Study Guide Part 2

You are just starting out on building your credit. what is the easiest way to ruin your credit with your checking account?

C. You overdraw your account many times and the bank closes your account.

The best way to get an accurate checking account balance is to call your bank or credit union directly.

True

Look at the following statements. Choose the one true answer.

A. Many check cashing services are rip-offs because they charge huge fees.

What is it called when you write a check for more money than you have in your account?

A. Overdraw

Why would a smart person keep at least $100 balance in their checking account st all times? Which answer is MOST correct?

A. You never know when unexpected fees or expenses will hit your checking account. And you can at times forget to write down a payment you make with your checking account or debit/ATM card. so, you're less likely to overdraw your account if you always keep a hundred dollar balance.

Why is it stupid to trust an ATM machine to tell you your correct balance?

B. The balance on the machine may not include payments you have made by check or online that need to be deducted from your balance.

Why do banks put a "hold" on a check?

C. Because the check is large and the bank wants to make sure it gets the money before releasing it to you.

Look at the following statements. Choose the correct Answer.

C. Checking accounts can (and should) be linked to a savings account.

You don't keep a $100 balance in your checking account, and you overdraw your account a few times. Which of these is the most likely result?

D. Your financial institution will charge you an "overdraft fee" every time you overdraw your account, and may tell the credit bureaus you have overdrawn your account. The credit bureau might then lower your credit rating. If the credit bureaus lower your credit rating, you get charged more on interest for loans and credit cards, and you may pay bigger deposits for utilities.

Online bill pay is much easier and cheaper than writing checks to pay your bills.

True

Some Financial institutions like to charge you for checks, check registries, ATM fees and change sorting fees.

True

When you feel out a check for a certain amount of money and then sign that check, you are saying you might have money in the account.

True

When you pay with a debit or ATM card, you are not borrowing money. You are spending your own money. When you pay with a credit card, you are always borrowing money.

True

You should plan on spending on 2/3 of your pay check on rent and household expenses.

True

Which of the following statements is false?

A. A debit card never has a MasterCard or Visa logo on it.

Landlords have rights, too! Which of the following is NOT a right of the landlord?

A. A landlord can keep all of your security deposit if you do not take out the garbage one day.

What do you call the person or company that is renting an apartment or house to you?

A. Landlord

If you use mobile payment and lose your phone, you should NOT:

B. Get a new phone and keep using the same cad in the app.

If you deposit a check into your account and the teller tells you it is on hold for 5 days, can you still spend that money today or tomorrow?

B. No

You have $200 in your account. you are very responsible. What is the maximum amount of money you should spend?

D. $100

Which of the following statements are correct?

D. All of the above (A. You can overdraw your account with an ATM card/ B. ATM cards can be used in all stores to buy things/ C. It doesn't matter what machine you use when you want to draw out money using your ATM card)

Which of the following statements about an ATM card is false?

D. An ATM will always give your money no matter how much money you you have in your account.

What should you do when you open a checking account?

D. Both A and C (A. Open a savings account and link it to your checking account./C. Try to sign up for true overdraft protection, even though you have to pat for it.)

If you have credit problems you are NOT going to pay more in rent or security deposits.

False

It is OK to uses "white out" to fix a mistake when writing checks in pen.

False