Pre-Test Your Knowledge In The Aftermath A deposit account that offers easy access to your Which of the following items is a potential money, offers the option to pay bills online or by negative consequence of placing money in a electronic transfer, and offers the option to make certificate of deposit? purchases with ATM or debit card is called: lower interest than a savings account A checking account Has a limited number of monthly transactions A saving account Penalties are charged for early withdrawals of A money market account funds A deposit account that pays interest on deposits, When choosing a financial institution, you should allows withdrawals and transfers with an ATM consider: card, does not offer the option of bill payment or Access to locations, ATMS, and services to purchases, and may have a minimum deposit meet your financial needs requirement is called Fees charged for overdrafts and other penalties A money market account The likelihood of the bank failing A savings account A check: A certificate of deposit Directs your financial institution to transfer A deposit account that requires deposited funds to from your account to another person’s or remain in the account for a fixed amount of time, business’s account. imposes penalty fees for early withdrawal, and Can be converted to an electronic debit by the generally pays higher interest rates than other recipient by using the digits in the MICR line deposit accounts is called: Both of the A savings account An overdraft occurs: A certificate of deposit When you write more than the allowed number A money market account of checks during a single month. A deposit account that pays higher interest on When your savings account balance falls deposits than other accounts, generally has a below the minimum amount required by the minimum balance requirement, and allows a very rules of the account. limited number of transactions each month is When a check is cashed or a debit is processed called: against an account that does not have sufficient A checking account funds to cover the transaction. A money market account Direct deposit: A certificate of deposit Is available only to customers with checking Examples of traditional financial institutions accounts. include: Can be accomplished by transferring funds Commercial banks and credit unions from your savings to your checking account Commercial banks and finance companies using an ATM. Payday lenders and check cashing outlets Is a convenience that allows recipients of a direct deposit to have same-day access to deposited funds.
Pre-Test Your Knowledge In The Aftermath A deposit account that offers easy access to your money, offers the option to pay bills online or by electronic transfer, and offers the option to make purchases with ATM or debit card is called: A checking account A saving account A money market account A deposit account that pays interest on deposits, allows withdrawals and transfers with an ATM card, does not offer the option of bill payment or purchases, and may have a minimum deposit requirement is called A money market account A savings account A certificate of deposit A deposit account that requires deposited funds to remain in the account for a fixed amount of time, imposes penalty fees for early withdrawal, and generally pays higher interest rates than other deposit accounts is called: A savings account A certificate of deposit A money market account A deposit account that pays higher interest on deposits than other accounts, generally has a minimum balance requirement, and allows a very limited number of transactions each month is called: A checking account A money market account A certificate of deposit Examples of traditional financial institutions include: Commercial banks and credit unions Commercial banks and finance companies Payday lenders and check cashing outlets Which of the following items is a potential negative consequence of placing money in a certificate of deposit? lower interest than a savings account Has a limited number of monthly transactions Penalties are charged for early withdrawals of funds When choosing a financial institution, you should consider: Access to locations, ATMS, and services to meet your financial needs Fees charged for overdrafts and other penalties The likelihood of the bank failing A check: Directs your financial institution to transfer from your account to another person’s or business’s account. Can be converted to an electronic debit by the recipient by using the digits in the MICR line Both of the An overdraft occurs: When you write more than the allowed number of checks during a single month. When your savings account balance falls below the minimum amount required by the rules of the account. When a check is cashed or a debit is processed against an account that does not have sufficient funds to cover the transaction. Direct deposit: Is available only to customers with checking accounts. Can be accomplished by transferring funds from your savings to your checking account using an ATM. Is a convenience that allows recipients of a direct deposit to have same-day access to deposited funds.
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