Finance: Banking
Your debit card is stolen, and you report it to your bank within two business days. How much money can you lose at most? A. $500 B. $25 C. $50 D. $150
C. $50 Explanation: If you notify the bank within two business days, you can only be held liable for up to $50 in unauthorized transactions. Otherwise, you can be held liable for up to $500 in unauthorized charges.
Barbara wants to reconcile her bank statement. She needs to calculate 1.______ beforehand and look for 2._______ when she gets her statement.
1. the amounts the bank hasn't recorded yet 2. banking errors
Max wants to open a basic checking account at his local bank. He needs to bring his 1._______ and 2.______ along with a $50 deposit, to open the account.
1.SOCIAL SECURITY NUMBER 2.DRIVERS LICENSE.
Under the Electronic Fund Transfer Act, which two banking practices are part of the consumer's responsibility? A. knowing rights and responsibilities relating to money transfers B. disposing of credit reports to maintain security C. notifying the bank of lost credit or debit cards D. testing networks to ensure there is appropriate network security
A. knowing rights and responsibilities relating to money transfers C. notifying the bank of lost credit or debit cards Explanation: Disposing credit card report is advised in order to ensure that your card would stay unusable after you no longer need it, but it never become an obligation in any way. And testing the networks is the obligation of the credit card issuer, not the consumer.
Match each adjustment for reconciling a checking account to the correct document. -Adjust bank statement -Adjust Check Register
Adjust bank statement: deduct outstanding checks add outstanding deposits Adjust Check Register: deduct bank service charges add interest earned Explanation: Balancing bank statements requires you to deduct outstanding checks and add outstanding deposits to the bank balance. Balancing a check register requires you to deduct bank service charges and add earned interest to the bank or check register balance.
Which two security regulations does the PCI enforce with regard to electronic banking? Banks must maintain a secure network. Banks must allow customers to choose the level of security they want. Banks must compensate customers for money lost due to stolen cards. Banks must have an information security policy.
Answer: Banks must maintain a secure network Banks must have information security policy Explanation: The PCI Data Security Standard requires banks to maintain a secure network and have an information security policy. However, customers can't choose the security level, and the bank does not compensate customers for money lost on stolen cards.
What makes mobile banking somewhat less secure than regular online banking? A. Mobile banking apps are inherently less secure than banking programs on a computer. B. Mobile devices can be lost or stolen more easily than a computer, such as a laptop. C. Confidential financial information entered into a mobile device may be visible to people in the vicinity. D. Unlike with computers, mobile banking apps store personal financial information and share it with other apps.
B. Mobile devices can be lost or stolen more easily than a computer, such as a laptop.
Choose a bank in your community and ask for the forms that you need to fill out in order to open a checking account and a savings account. You may be able to get the forms from the bank branch or to download them from the bank's website. Fill out both forms. Then, for each account type, describe the following requirements: the information the bank wants the documentation required to support the information you provided the agreement you're entering into with the bank by signing the form
Online answer provided(Answers may vary.): Checking Account: The form for opening a checking account asked for my name, address, Social Security number, driver's license number, date of birth, US citizenship status, employment or occupation, employer information, and yearly income. The bank asked for my Social Security card and driver's license as supporting documentation, along with a $50 opening deposit. By signing with the bank, I agree to the bank's terms and conditions and to any relevant fees. The terms and conditions establish the bank's rules for using the account. It states what fees the bank can deduct directly from my account without telling me first. Some banks also add in a clause that the bank has the right to bill you for attorney's fees if there is a legal dispute involving your account. The agreement also states how long the bank is allowed to take to process and record deposits into my account. It also discloses the fees associated with overdrafts, which happens when someone spends more than is available in their account. It also outlines the fees and rules for account transfers, direct deposits, and statements. In my research, I found that some banks have the right to refuse to perform account transfers unless they agree in writing to do so. Savings AccountThe savings accounts form asked for the same information as the checking account form: name, address, Social Security number, driver's license number, date of birth, US citizenship status, employment or occupation, employer information, and yearly income. The bank requires a Social Security card, driver's license, and a $50 opening deposit. By signing with the bank, I agree to the bank's terms and conditions and to any fees. The terms and conditions state the bank's rules for the savings account. It outlines the fees and charges that the bank has the right to deduct directly from the account without notifying me. Some banks have monthly average balance requirements for savings accounts, but this one does not. Usually, a fee will be immediately deducted from the account if the balance goes below the requirement. The agreement also states the rules for account transactions, fund transfers, cash withdrawals, checks, interest earned, etc.
Research online and find two software tools for bank account reconciliation. Write a 500-word report comparing their features and benefits.
Site provided answer (Answers may vary.): Cashbook: Cashbook is an online software tool that offers bookkeeping and accounting solutions. It offers bank reconciliation solutions to help consumers reconcile bank accounts. It offers consumers an online general ledger to keep track of account transactions. Consumers can link their bank accounts directly to Cashbook so the software can automatically download and update the general ledger. Importing bank statements off the Internet means consumers don't have to waste time typing everything out. Cashbook can make consumers confident that their deductions and additions to the account balance are done correctly. Once an account is balanced, the software allows consumers to search and sort through their data and print off reports. Cashbook also provides customer support so the consumer can have help learning how to use the software. It also offers how-to videos on different aspects of the application. The best aspect of Cashbook is that it is free. Once consumers set up their records, they are ready to enter the bank opening balances. Without accurate opening balances, the reports created by Cashbook will be incorrect. Go to Cashbook Settings, then to Financial Settings to input the information. QuickBooks: QuickBooks is an accounting program that keeps track of all your financial transactions. Check writing, money withdrawals, deposits, incurred bank charges, and fees are recorded in QuickBooks and reconciled with the bank's records. To begin the reconciliation process, consumers first need to compare the beginning balance on their bank statements to the beginning balance on QuickBooks. This establishes that the information in QuickBooks is correct. In order to have correct information, you have to clear transactions directly in the account register within the software. To do this, consumers have to go into their bank account, choose Begin Reconciliation, select the appropriate account, and in the Statement Data field, enter the date of the bank statement to be reconciled. Compare that amount to the amount on the bank statement. Next, find the ending balance on the bank statement and enter it in the Ending Balance field. Also enter any service charges or interest earned. In the field for service charges, consumers enter the name of the expense account to track service charges. For interest, enter the name of the income account to track interest income. QuickBooks will then reconcile the account. If the beginning balance and the statement don't match, QuickBooks has a system for checking and correcting the issue. QuickBooks not only offers reconciliation and reports, but also offers graphs, bill tracking, overdue notices, and other services. Both Cashbook and QuickBooks are accounting software programs to help consumers reconcile their accounts. Cashbook offers a more basic interface for reconciling accounts. It also requires less data entry than QuickBooks. However, it relies only on the information from the bank's site. This means if there is an error on the bank side, Cashbook will not catch it. QuickBooks requires more data entry, but does more comparison as well. There are more entry fields for line items, such as service charges and interest earned. It also offers additional services that Cashbook doesn't. When comparing the two, QuickBooks appears to offer consumers more options, reminders, and services.