Banking

Consider the following incomplete deposit ticket: What was Art's total deposit?

$1,545.83

Jack plans on using network ATMs about 4 times per month. What would be Jack's total estimated annual fees for a checking account with direct paycheck deposit, one overdraft per year, and no 2nd copies of statements?

$104

Consider the following incomplete deposit ticket: What was the value of the third check Tony deposited?

$105.20

Maggie noticed that her financial record is missing information. She recalls that on October 15th, she purchased gasoline in the amount of $32.51 and on October 16th, she and her friends went out for dinner, where she spent $25.62. Given this information, and the image below, determine her balance as of October 26th.

$112.16

If the NCUA charges 6.3 cents per 100 dollars insured and Credit Union L pays $8,445 in NCUA insurance premiums, approximately how much is in Credit Union L's insured deposits?

$13.4 million

Irving spent the day shopping and made the following purchases: Item Cost ($) Novel 8.75 Shirt 21.66 Lunch 9.13 Potted plant 16.89

$151.49

If the NCUA charges 3.3 cents per 100 dollars insured and Credit Union M pays $5,995 in NCUA insurance premiums, approximately how much is in Credit Union M's insured deposits?

$18.2 million

If the NCUA pays $1.92 billion to cover several failed credit unions, and doing so drains its reserve fund by 8.42%, approximately how much was in the fund to begin with?

$22.8 billion

Bob's bank charges him a $3.15 service fee every time he uses an out-of-network ATM. If Bob uses an out-of-network ATM an average of three times every two weeks, how much will he pay in service fees over the course of a year?

$245.70

If the NCUA pays $1.36 billion to cover several failed credit unions, and doing so drains its reserve fund by 5.18%, approximately how much was in the fund to begin with?

$26.3 billion

Ted is looking over his spending pattern for the past week to try to determine how much money he had on Sunday. This is Ted's spending pattern: Day Debit ($) Credit ($) Monday 112 --- Tuesday 141 18 Wednesday 56 --- Thursday 28 70 Friday 22 42 Saturday 16 88 If the bank charges Ted an overdraft fee of $25 every time he overdraws his account, and Ted overdrew his account on Wednesday but not on Friday, which of the following is a possible amount of money that Ted could have had in his account last Sunday? Assume that the only debits and credits not listed are overdraft fees.

$280

In 2007, the FDIC's insurance limit was $100,000 per person per bank. At that time, if Kit had three separate $50,000 CDs at Bank R, a $60,000 checking account and a $140,000 money market account at Bank S, and an $80,000 savings account at Bank T, how much of Kit's money was FDIC insured?

$280,000

In 2007, the FDIC's insurance limit was $100,000 per person per bank. If Sam had a $150,000 savings account and $80,000 checking account at Bank J, a $95,000 money market account at Bank K, and a $200,000 savings account at Bank L, how much of Sam's money was FDIC insured?

$295,000

Evelyn spent the day shopping and made the following purchases: Item Cost ($) Camera 66.31 Hat 13.44 Parking 8.00 Planner 9.78 When Evelyn was done, she checked her account balance and found she had a total of $208.16. How much money was in Evelyn's account to begin with?

$305.69

If the FDIC charges Bank D 6.1 cents per 100 dollars insured, how much must Bank D pay to insure $7.3 million in deposits?

$4,453

Bill has $270.61 in his account before making any transactions. Over the course of a week, Bill makes the following transactions: Transaction Debit ($) Credit ($) Paycheck --- 535.67 Electric bill 112.53 --- Groceries 90.79 --- Savings bond --- 50.00 Car payment 225.65 --- At the end of the week, how much money is in Bill's account?

$427.31

Ruby wants to start her own business taking photographs. She already has her own camera, but needs to purchase lights, a photo printer, and photo paper. If the cost of the photo printer is $251.99, the cost of lighting is $150.00, and the cost for 100 sheets of photo paper is $30.98, determine how much of her savings will be used to start her company, given that she has $840.32 in savings.

$432.97

Dominic is looking over his spending pattern for the past week to try to determine how much money he had on Sunday. This is Dominic's spending pattern: Day Debit ($) Credit ($) Monday 158 --- Tuesday 69 44 Wednesday 175 --- Thursday 131 38 Friday --- 53 Saturday 22 14 If the bank charges Dominic an overdraft fee of $25 every time he overdraws his account, and Dominic overdrew his account on Thursday but not on Saturday, which of the following is a possible amount of money that Dominic could have had in his account last Sunday? Assume that the only debits and credits not listed are overdraft fees.

$435

If the FDIC has a $59.5 billion insurance fund and must use 5.6% of it to cover several failed banks, approximately how much money is left in the fund?

$56.17 billion

Based upon past experience, Barry expects no overdrafts. He expects no 2nd copies of statements. Barry estimates that he will use network ATMs about 5 times a month with either bank. Barry decides in the end to choose EECU. Assuming that both banks provide the necessary services equally well, and based upon the tables of fees given above, how much can Barry reasonably expect to save annually by choosing EECU in this case over E-town bank?

$78

Danielle has $127.02 in her account before making any transactions. Over the course of a week, Danielle makes the following transactions: Transaction Debit ($) Credit ($) Birthday check --- 75.00 Night out 66.14 --- Garage sale proceeds --- 121.58 Charitable donation 42.25 --- Doctor's appointment 115.30 --- At the end of the week, how much money is in Danielle's account?

$99.91

Downtown Bank offers a checking account. The bank charges a fee for overdrafts, monthly maintenance for balances below $300, out-of-network ATM withdrawals, and more than three money transfers in a month. What are three things you can do to avoid fees from a Downtown Bank checking account?

1. Always keep more than $300 in your account. 2. Always keep track of your balance 3. Avoid making out-of-network ATM withdrawls. 4. Avoid making more than three money transfers each month.

George tallies up the transactions in his check register and comes up with a total balance of $221.57, but his bank statement says that his balance is $203.73. Which of the following are still outstanding? I. A $20.25 check to the florist II. A $14.29 check to the dry cleaners III. A $38.09 check deposit IV. A $19.05 money order deposit

A

Mrs. Jones has received her bank statement and is ready to reconcile it with her checkbook register. Fill out the reconciliation worksheet for Mrs. Jones using the data from her bank statement and checkbook register. Assume all transactions on previous pages have already cleared. Consider what must be done, if anything, in order to finish the reconciliation process. a. Line 6 is $10.00 higher than line 5; look back at the statement to find the discrepancy. b. Any transaction that appears on the register must still be added to the bank statement. c. Add lines 5 and 6 together. d. The rent of $600 is in your checkbook but not on your bank statement.

A

In 2007, the FDIC's insurance limit was $100,000 per person per bank. Approximately 62% of Gil's deposits were insured by the FDIC. Which of the following was a possible setup for Gil's deposits?

A $108,000 savings account and $46,000 CD at Bank T; a $36,000 money market account and $38,000 CD at Bank U; a $63,000 checking account, $80,000 savings account, and $70,000 money market account at Bank V

In 2007, the FDIC's insurance limit was $100,000 per person per bank. Approximately 59% of Mark's deposits were insured by the FDIC. Which of the following is a possible setup for Mark's deposits?

A $50,000 savings account and $31,000 money market account at Bank G; a $71,000 money market account, $109,000 CD, and $39,000 checking account at Bank H; a $55,000 checking account, $84,000 savings account, and $38,000 CD at Bank I

Fixed interest rate

A fixed interest rate is an interest rate that does not change for the life time of the account.

When choosing a bank, why might ATM availability be valuable to someone who values convenience over cost?

A greater availability of ATMs may make it easier to do bank transactions. Someone may choose this availability over a higher savings interest rate.

Which of the following would be a good reason to place your money into a savings account?

A savings account earns interest

Variable interest rate

A variable interest rate is an interest rate that can change over the life time of the account.

Overdraft fee

An overdraft fee is charged to an account when withdrawals from it exceed the available funds and cause a negative balance. This fee is incurred for every transaction that exceeds the available funds.

Megan used a reconciliation worksheet provided by her bank. Line 5 should equal line 6 at the end of the reconciliation, but it does not. Megan wants to first look for a single transaction that could have caused this problem with reconciliation. What is the amount of the transaction that Megan should look for in order to find a solution to the problem?

B

Miranda is opening a checking account, but she left her driver's license at home. Which, if any, of the following can she use to open her account anyway? I. Sav-A-Lot Discount Card II. Passport III. Social Security card

B

Richard's checkbook register as of 02/19: Enter the following transactions into Richard's checkbook register and state his ending balance:

B

When must you sign a deposit slip?

B

Emma usually has about $1000 in her account at any given time during the month. She usually visits the ATM twice a week and is interested in banking online options. Bank R has 10 ATMs within a 5 mile radius of Emma's home. Bank S has 1 ATM 10 miles from Emma's work. Which bank should she choose?

Bank R

Henry is moving and needs to open a new checking account. He is trying to decide between three banks using the chart below: Henry usually has about $300 in his account at any given time during the month. He limits his ATM visits to one per week and is interested in banking online options. Bank X and Bank Z have 5 ATMs within a 5 mile radius of Henry's work and his new home. Which bank should he choose?

Bank Z

In what way is a debit card similar to a check?

Both pull money directly from a checking or savings account.

Consider the following incomplete deposit slip: How much cash did the person who filled out this deposit slip receive? a. $381.23 b. $451.02 c. $88.79 d. $436.02

C

What is a "balance brought forward?"

C

Which of the following must be present for a check to be legitimate? I. Your signature II. A memo or note III. The payee

C

Theresa has $708 in her account and wishes to throw a party. She plans to include the following: Purchase Cost ($) Decorations 76.92 Catering 150.66 Musicians 242.15 Refreshments 123.36 Venue 260.47 When Theresa makes the calculations, she finds that she cannot afford everything that she would like to have. What is the cheapest aspect of the party that she can eliminate to keep from overdrawing her account?

Catering

Jenna wants to save a $10,000 trust fund she received when she turned 21, and add $50 per month as emergency funds. She has narrowed her search for a savings account to 2 banks, Bank A and Bank B. Bank A pays a fixed rate of interest, and Bank B pays a variable rate, but both rates are currently the same. Jenna's trusted friend advises her to make the selection based upon her banking needs in consideration of the other services and fees of the banks, because the interest rates are the same. If you were advising Jenna about how to choose an account based upon her own needs, what advice below would you not give her?

Choose the variable rate because if it goes up, you will make a lot of money that will pay for the fees.

Liam uses checks and a debit card, but does not always write all the transactions in his checkbook register. He has lost track of his checkbook balance. Liam looks up the "available balance" using online banking, and writes it on the next line as his new checkbook balance available to spend. What is wrong with Liam's method?

D

Nick is making a deposit with a check and wants cash back. His deposit slip has his name, his account number, the date, the amount of the check, his signature, the total deposit amount, and what else?

D

Roberta's monthly bank statement says that she has a balance of 386.29, but Roberta's check register says that her balance is 370.77. Which of the following are still outstanding? I. A $78.17 check to the electric company II. A $16.15 deposit from Roberta's roommate III. A $22.67 check to the grocery store IV. A $62.65 deposit from Roberta's tax return

D

Which of the following items are elements of a monthly checking account statement? I. A period (beginning date and ending date) II. A beginning balance and ending balance. III. A detailed list of debits and credits during the period.

D

Rex has several hundred thousand dollars to save, and he wants to keep it as safe as possible. What would you recommend Rex do to keep his money safe?

Deposit the money in several banks, not putting too much money in any one.

Richard has $652 in his account and is planning a road trip. He looks at how expensive hotels and sightseeing costs are in certain cities, planning accordingly: City Cost ($) Detroit 196.87 Pittsburgh 180.32 St. Paul 102.87 Cincinnati 155.81 Richmond 211.86 When Richard makes the calculations, he finds he does not have enough money to visit each city. What is the cheapest city that Richard can drop to avoid overdrawing his account?

Detroit

Having a savings account can contribute to a person's overall financial well-being. Which one of the following is NOT a benefit of maintaining a savings account?

Having a savings account gives individuals the ability to borrow money from members in the community

Choose the circumstances in which a debit card can be used. I. Point-of-sales transactions II. ATM withdrawals

I and II

Jan wants to save a $2000 gift from her grandparents, and add $50 per month as emergency funds. She has narrowed her search for a savings account to 2 banks, Bank A and Bank B. Bank A pays a fixed rate of interest, and Bank B pays a variable rate, but both rates are currently the same. What advice would you give Jan about how to choose an account based upon her own needs? I. The fees and services will make a much bigger difference than the type of interest while your balances are small. II. The more that you expect to save, the more you should think about what effect the interest rates might have on your finances. III. Choose the variable rate, because no matter what the fees are, if it goes way up, you could become richer.

I and II

Isabelle has $84.00 in her account on Sunday. Over the next week, she makes the following changes to her balance via deposits and purchases: Day Debit ($) Credit ($) Monday 22.35 --- Tuesday 47.60 10.29 Wednesday 15.44 --- Thursday 11.25 --- Friday 9.78 22.69 Saturday 30.54 18.86 On which day or days does Isabelle get charged an overdraft fee? I. Thursday II. Friday III. Saturday

I and III

Anna has $274.00 in her account on Sunday. Over the next week, she makes the following changes to her balance via deposits and purchases: Day Debit ($) Credit ($) Monday 194.62 35.45 Tuesday --- 11.20 Wednesday 145.86 24.75 Thursday 53.35 33.80 Friday 31.60 45.77 Saturday 12.90 61.63 Anna gets an overdraft fee if her balance at the end of the day is negative. On which day or days does Anna get charged an overdraft fee? I. Wednesday II. Thursday III. Friday

II and III

Ben is looking at banks for checking and savings accounts. Some offer car loans and others do not. Ben may need a car loan sometime in the next few years. But Ben wonders if he should really ask what kinds of loans the bank makes, because he is getting a checking account, not a car loan. Which statement below gives the best reason for Ben to consider loan availability in choosing a checking account?

If he needs a car loan in the future, he will have a relationship of trust with the bank.

Steven is looking at banks for checking and savings accounts. Some offer home loans and others do not. Steven may need a home loan sometime in the next few years. But he wonders if he should really ask what kinds of loans the bank makes, because he is getting a checking account, not a home loan. Which statement below gives the best reason for Steven to consider loan availability in choosing a checking account?

If he needs a home loan in the future, he will have a relationship with the bank.

Where does the FDIC's reserve fund come from?

Insured banks pay a premium on the money insured.

You are examining your choices of banks to open a new savings account. Costs include monthly maintenance fees and statement copy fees. Income can come from ___________.

Interest on deposits

What is the purpose of the Electronic Funds Transfer Act?

It limits your liability if your ATM card is stolen

Which of the following forms of I.D. is not an acceptable form of I.D. for opening a savings account?

Library card

Manny has just filled out his deposit ticket for his savings account. He hands it to the teller and the teller hands it back to Manny. The teller explains to Manny that the deposit ticket cannot be accepted in its current form. What must Manny do to the deposit ticket in order for the teller to process the deposit ticket?

Manny forgot to sign the deposit ticket for less cash back

Which of these is not a disadvantage to writing checks.

Many companies do not accept checks.

Mary has a large sum of money to deposit, but since she has heard many stories from her grandmother about the Great Depression, when many banks lost their customers' deposits, she is worried that the bank might not keep her money safe. Give Mary some recommendations about what she can do to make sure that her money stays protected.

Mary should make sure to choose a bank that is FDIC insured. Furthermore, if she has more than maximum deposit insurance amount to deposit, she should spread her deposits out among several separate banks. These should be totally different banks, not simply different branches of the same bank. The FDIC will insure up to the maximum deposit insurance amount at each bank, even if the bank fails.

Which of the following is protected by the FDIC?

Money market accounts

Why is it sometimes easier to open an account with a bank rather than with a credit union?

Most credit unions require some kind of affiliation, but banks will let anyone with money open an account.

Which of the following is not something that you could do with a normal checking account?

NOT B

Which of the following is not protected by the FDIC?

NOT Checking accounts

Which of the following is not a way in which the Federal Reserve ("the Fed") and its policies affect banks?

NOT The Fed determines at what price banks must lend money to one another

Consider the following incomplete deposit ticket: Which of the following are possible amounts for the third check and the cash that Cindy deposited?

NOT no cash and a $303.68 check

If you were teaching a foreign visitor about checking and savings accounts at banks and credit unions in the USA, which item below would you say consumers of these accounts usually do not have as a protection of their rights?

No automatic fees charged to the account.

Sue's bank account has a balance of $899.83 before she starts spending money. She makes the following transactions: Transaction Cost ($) Rent 353.76 Video game 32.79 Bike maintenance 60.26 Jacket 55.62 Rug 80.40 Night out 35.77 Sue is considering splitting the cost of a new TV with her roommate. Her share would be $305.22. Can Sue afford this?

No, making that purchase will overdraw her account.

Which of the following items may be a good consideration in selecting a bank?

Number of ATMs or bank branches near where you live, shop, work, or travel and knowledge of personal usage habits and needs

Paul has decided to set up his own recording studio. He needs to purchase four speakers at $435 apiece and two mixers at $772 apiece. He also needs to soundproof a room, which will cost him $838. If Paul has $4,500 in his savings account, how close can he come to setting up his studio?

Paul can set up his studio and have $378 left over.

Sandy is trying to reconstruct her spending pattern from July. She knows that she had $277 in her account on July 1, but after that, her receipts and balance statements are all scrambled. Here are Sandy's records: Date Transaction Type Amount ($) 7/26 Purchase 86 7/25 Deposit 76 7/4 Purchase 137 7/6 Deposit 90 7/10 Purchase 131 7/9 Purchase 145 7/15 Deposit 152 7/19 Purchase 137 Assuming that this is a complete, if scrambled, record of Sandy's July spending and that any overdraft fees incurred do not affect the running total, how many times did Sandy overdraw her account in July?

Sandy overdrew her account more than twice.

What kind of financial institutions does the Office of Thrift Supervision oversee?

Savings and loan institutions

Based upon past experience, Bill expects to accidentally overdraft the account 2 times per year, unfortunately, due to unexpected charges and miscommunications. He expects no 2nd copies of statements, and to use network ATMs 4 times per month with State Bank (due to less in-network ATMs being available), or 2 times per month with Common Bank. He has $2500 to deposit to an emergency savings account for overdraft protection, and thinks that the balance will be enough to cover most all overdrafts in the future if automatic transfers are made when needed. Based on the tables of fees, which bank is expected to cost the least amount in fees per year?

State Bank is expected to cost the least.

A point of sale transaction occurs when an ATM withdrawal is made.

T

Anna is choosing a bank and a checking account. She would be well-advised to consider her personal needs and values in the analysis, not only the bank's features.

T

Which of the following government agencies does not regulate banking or financial markets?

The FCC

Why does the FDIC place a limit on the amount of money it will insure?

The FDIC has only limited reserves.

Why is it important to choose a bank that is a member of the FDIC?

The FDIC is a government bureau that insures the money that customers deposit in the bank, so your money is safer in an FDIC bank.

FDIC

The FDIC or Federal Deposit Insurance Corporation supervises state-chartered banks that are not members of the Federal Reserve System (Fed), and insures deposits at banks and savings and loans.

FED

The Fed or Federal Reserve System supervises state-chartered banks that are members of the Federal Reserve System.

NCUA

The National Credit Union Administration or NCUA charters and supervises federal credit unions and insures deposits at federal credit unions and many state credit unions through NCUSIF (National Credit Union Share Insurance Fund).

OCC

The OCC or Office of the Comptroller of the Currency charters and supervises national banks. If the word 'national' appears in the name of a bank, or the initials "NA' follow its name, the OCC oversees its operations.

Which of the following government agencies regulates financial markets?

The OTS

OTS

The OTS or Office of Thrift Supervision is the primary regulator of all federal, and many state-chartered thrift institutions, including savings banks and savings and loan institutions.

Which of these is not a factor you need to consider when choosing a bank?

The amount of money you paid in income taxes last year

Macky wants to open a checking account. He is examining different banks and banking accounts. Then he will choose a bank account for his needs. Which of the following statements should not be one of Macky's reasons for choosing a bank?

The first bank Macky considered offered a chance to win a prize upon opening an account

Minimum opening balance

The minimum opening balance is the initial dollar amount set by the bank that is required to open a account.

Which of the following items may not be a good consideration in selecting a bank?

The word "FREE" is prominently displayed in the marketing pamphlet.

Which statement below gives the best reason for considering personal needs, values, and circumstances in selecting a bank account?

This information can lead to a better match between account features and the person's needs

Elizabeth has $252.00 in her account on Sunday. Over the next week, she makes the following changes to her balance via deposits and purchases: Day Debit ($) Credit ($) Monday 114.60 150.00 Tuesday 79.68 --- Wednesday 161.39 --- Thursday 57.40 --- Friday 22.85 75.00 Saturday 140.55 --- On what day does Elizabeth first get charged an overdraft fee?

Thursday

Vítor knows he must prepare and possibly prevent overdraft funds fees since they are charged automatically. Which statement below would be the least effective element of a plan Vitor could use to accurately estimate (or minimize) overdraft fees on the account?

Use the debit card for a large number of small purchases and check the balance later.

Frank has $66.50 in his account on Sunday. Over the next week, he makes the following changes to his balance via deposits and purchases: Day Debit ($) Credit ($) Monday 60.33 80.75 Tuesday 54.45 --- Wednesday 49.20 15.00 Thursday 35.40 --- Friday 16.85 75.00 Saturday 80.56 --- On what day does Frank first get charged an overdraft fee?

Wednesday

Adam's bank account has a balance of $1213.69 before he starts spending money. He makes the following transactions: Transaction Cost ($) Car payment 260.16 Groceries 97.98 Parking ticket 75.00 DVD box set 115.35 Antique lamp 68.53 Suit 331.84 Adam is considering getting his car a new paint job. Doing so will have a total cost of $264.83. Can Adam afford this?

Yes, but doing so will clear out his account.

Ruby wants to start her own business taking photographs. She already has her own camera, but needs to purchase lights, a photo printer, and photo paper. If the cost of the photo printer is $251.99, the cost of lighting is $150.00, and the cost for 100 sheets of photo paper is $30.98, determine how much of her savings will be used to start her company, given that she has $840.32 in savings.

a

What does it mean for a savings account to have a minimum balance?

a

Stephen used a reconciliation worksheet, but his checkbook balance does not match the final worksheet balance. Evaluate the following list of possible errors that he has made. Decide which items could potentially correct this problem if found and corrected.

c. All five of the potential errors could cause this sort of problem.

Manny has just filled out his deposit ticket for his savings account. He hands it to the teller and the teller hands it back to Manny. The teller explains to Manny that the deposit ticket cannot be accepted in its current form. What must Manny do to the deposit ticket in order for the teller to process the deposit ticket?

not d