Financial Mathematics Unit 2: Banking

Shelley is visiting from London and uses her ATM card to withdraw $200 at Local Bank B. If Local Bank B charges $4 for ATM fees per foreign transaction plus 3% of the withdrawal, how much would she owe in fees for that transaction? Round to the nearest dollar amount, such as: $6.

$10

If Julio used a non-network ATM at a national bank that charges $3.00 per transaction two times, went to a local bank that charges $2.50 once, and to a credit union that charges $2.00 per transaction three times, how much would he owe in ATM fees? Round to the nearest cent.

$14.50

Dya had an account balance of $532.00 in her checking account. Over the next month, she deposits $210.00, pays her annual credit card fee of $25.00, and makes ATM withdrawals of $300.00 and $60.00 from an ATM that charges a $2.50 fee per transaction. What is her account balance at the end of the month? Enter your answer as a dollar amount, such as: $21.00.

$352.00

Geraldo recently saw a newspaper ad for a new version of his laptop. The projected price is $400.00, and the laptop will be out on the market in about one year. Geraldo wants to purchase a new laptop but is wondering if he should wait a year. With 2.5% inflation, what amount would he pay to purchase a laptop today that is the same value as the one he saw in the ad?

$390.24

Jess is overseas and withdraws $150.00 from his account. His bank charges a foreign transaction fee of $6.00, plus 2.5% when converting to the local currency. How much will his bank charge in fees?

$9.75

Dash (DASH), Ethereum, (ETH) and Monero (XMR) are popular cryptocurrencies. The rate of conversion is such that 11 DASH is equivalent to 1.455XMR, and 11 ETH is equivalent to 2.629XMR. Match the equivalent monetary amounts.

0.25 of 1 2.78 ETH: 5.02 DASH xxx6 DASH: 5.238 XMR xxx3.6DASH: 2.065 ETH xxx5.43 XMR: 3.32 ETH

Review the table with fees for Bank A and Federal Credit Union (FCU) B. Which statements are true? Select all that apply.

0.63 of 1 Three overdrafts per month cost more at Bank A. FCU B offers a better option for using checks. An ending balance of $250.00$250.00 at Bank A costs $5.00. xxx The total cost of using Bank A is more than using FCU B.

What is the availability of online and mobile banking?

24 hours/day, 7 days/week

Alisha wants to buy some Ripples (XRP). One Ripple is worth 0.331 American dollars. How many Ripples can she buy with $20.00? Enter your answer as a whole number, such as 23.

60

Suppose the exchange rate of US dollar to Japanese yen is $1 for every 107.35 yen, and the exchange rate of Japanese yen to Bitcoin is 1,086,300 yen for every 11 Bitcoin. If someone traded $83,000 US dollars for Japanese yen, then traded the yen for Bitcoin, how many Bitcoin would that person end up with? Round your answer to the nearest whole Bitcoin.

8

Lesson 8

ATMs and Debit Cards

Lesson 10

Alternate Electronic Money

Ethan is looking for a financial institution that will meet his needs. He has a part-time job and routinely puts 25% of each paycheck into a joint savings account he has with his parents. His ultimate goal is to buy a car, but he also wants access to his money so he can pay for clothes, school activities, and fuel. His savings account only allows three withdrawals per month without a penalty fee. Ethan wants to open his own checking account so he has easier access to his money. Review the table of fees for Local City Bank and Federal Credit Union (FCU). Which statements are true? Select all that apply.

FCU offers a better option for checks/transactions. Both financial institutions allow online banking. Ethan's savings will grow faster in FCU Overdraft protection will cost more at Local City Bank.

Lesson 9

Online and Mobile Banking

A personal identification number is a number used with both online and automatic teller machine (ATM) banking transactions. This number should be kept confidential for security purposes. What is the acronym commonly used for it? Type in all capital letters.

PIN

Which of the following are the main advantages of using ATMs? Select all that apply.

They are convenient to use. They may eliminate the need to visit a bank.

Lesson 6

Understanding Money

What banking option is best for someone who needs access on a daily basis and does not mind limited services?

a national bank

Which of the following cannot be used as money to purchase a good or service?

bartering

Which transaction must occur in person rather than through online banking?

depositing cash into a savings account

What advantage(s) does using payment apps such as Venmo and PayPal have over traditional banking? Select all that apply.

free to use ease of access transaction recording

Which are three true statements about using a debit card? Select all that apply.

keeps history of purchases safer than carrying cash cost of item may be higher

Which are three possible costs associated with a credit card? Select all that apply.

late payment fee annual fee interest

What type of risk(s) does a bank pose when it publicly discloses customers' information? Select all that apply.

legal risk security risk reputational risk

Devon's annual income grows at a rate of 2.9% per year, and inflation is 3.1% per year. After one year, how much can Devon buy with his annual income?

less than today because 3.1% is greater than 2.9%

Which fees are associated with checking accounts and online banking? Select all that apply.

lost card fees ATM fees

Malik had a checking account balance of $92.18. His bank will fund the first debit card purchase that creates a negative balance up to a limit of $100.00, but charges a $28.00 fee for that overdraft. Malik made a purchase of $36.12 yesterday, and another purchase of $76.50 today. He used a debit card for each purchase. What is Malik's account balance after the two purchases and any overdraft fees?

negative $48.44

What security feature provides more safety when logging into an online or mobile banking account?

receiving an additional code via text or email

What is a possible drawback(s) of using electronic payment systems? Select all that apply.

the risk of impulse buying the risk of being hacked

Lesson 7

traditional bank accounts

An online bank has the following fee structure: What is the total amount of fees if there were 6 withdrawals for cash in a month, 10 uses of an ATM, and 16 debit card transactions? Enter a whole number, like 789

xxx 208 ???

Johnny's interest rate on his saving account is 3% per year, and inflation is 2.5% per year. After one year, what would the money in his account buy?

xxx less than today because 3% is greater than 2.5%

Which password is the safest to use for online banking?

yeLLow22BAn@n@

Xander has a checking account at Smart Money Bank. He chose an overdraft protection option that costs $20.00 every time he writes a check for an insufficient amount. He is charged a monthly service fee of $15.00 if his account falls below $100.00. Debt card transactions are free. An ATM fee of $1.00 is charged if he uses a non-Smart Money ATM. The online bank statement shows all of the latest transactions.

−$48.00