Banking Basics Answers

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Read the scenario.James is deciding between banking options. He travels for work and needs a place for important documents and occasional notary services.Why would James choose a traditional bank over an online bank?

f
for the ease of mobile check deposit
f
for the higher interest rates on savings accounts
t
to take advantage of digital-first customer service offerings
t
to have access to services like safe deposit boxes
3

Read the scenario.Annabelle checks her interest-earning savings account at the end of the month. She sees her balance is lower than what the bank shows.What should Annabelle do to update her records correctly?

a
add the amount the bank pays her this month to the Deposits column
r
remove the fee for an ATM withdrawal from the Payments column
e
enter a fee for automatic membership renewal in the Payments column
n
note the amount of an unrecorded bank fee refund in the Deposits column
4

Read the scenario.Derek noticed that the final balance on his bank statement didn't match his records. He recently deposited $200, which he remembers recording, but he might have missed noting some small monthly transactions.What should Derek do next to reconcile his check register with the bank statement?

d
deposit another $200 to match the bank statement
u
update his register to match the bank's ending balance
a
assume that the bank did not process the $200 deposit
c
compare each transaction listed in the bank statement against his records
5

How do banking fees typically differ between online banking and traditional banking?

O
Online banking usually charges more for ATM use.
O
Online banking always has fees for mobile app usage.
T
Traditional banking often includes fees for online transactions.
T
Traditional banking frequently has higher fees for in-branch services.
6

Why is it important to reconcile a bank account regularly?

t
to receive reward points from the bank
t
to confirm that the balance and transactions are accurate
t
to maintain a certain number of transactions per month
t
to ensure the bank doesn't close the account for inactivity
7

Why is it important to reconcile a bank account each month?

t
to increase the interest rate on a savings account
t
to identify any unauthorized or fraudulent transactions
t
to prevent the bank from charging a monthly service fee
t
to update personal contact information with the bank
8

Which part of a bank statement recaps all the activity in your account?

A
Deposits
B
Account Summary
C
Before and After Details
D
Transaction History
9

After gathering the needed documents, what should one do to reconcile a checking account first?

c
check the interest earned on the account
i
identify the highest transaction on the statement
e
ensure the opening balance matches the statement's closing balance
l
list all the checks that have written out by date and amount

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