AnswersKapuschinskyWCA 3424 Consumer Applications 1st nine weeks 26-27Selecting a Bank

Selecting a Bank Answers

50 verified answers15 views
21
Free Preview

Glenda makes an online purchase of 4 picture frames for $12.95 each and 4 mats for $5.89 each. The site says that taxes paid by the customer are 6.5% of the total purchase price. Shipping charges are based on the following table: Amount of Purchase Standard Shipping Express Shipping up to $50 $5.10 $7.00 $50 up to $100 $6.35 $8.20 $100 up to $200 $7.80 $11.60 $200 and over $10.50 $16.45 Glenda selects express shipping for her purchase and the company bills her credit card $91.86 for the total of the online purchase. Determine if Glenda has been billed correctly for her purchase.

A
Glenda has been billed correctly.
B
Glenda has not been charged enough for her purchase.
C
Glenda has been over charged by $3.40 for her purchase.
D
Glenda has been over charged by $3.80 for her purchase.
22
Free Preview

Ben and his housemates signed a lease for an apartment for 12 months for $563 per month of which Ben agreed to pay $215 per month. Which of the following statements best gives the reasons that Ben’s rent payment is an essential (fixed) expense?

A
It cannot be eliminated in a later budget, in order to save money.
B
Living expenses have a higher priority than any other type of expense.
C
The spender controls the amount of the rent by choice of apartment.
D
He agreed to pay the same amount every month.
23

Rounded to the nearest thousandth, what is the decimal equivalent of %?

Question illustration
A
0.067
B
0.068
C
0.677
D
0.678
24

Choose the correct comparison and rationale. “An emergency fund is most similar to...”

A
...an insurance policy, because it might not cover all of your expenses.
B
...an insurance policy, because it provides a measure of security against a disaster.
C
...a savings fund, because it should be kept as liquid as feasible.
D
...a savings fund, because it is a luxury that comes after paying bills or debts.
25

What does it mean to be “in the red?”

A
You have more credits than debits.
B
You have more debits than credits.
C
You cannot find your financial records.
D
Your financial records are inaccurate.
26

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?

A
Always keep extra money in the account for such unexpected events.
B
Use the debit card for a large number of small purchases and check the balance later.
C
Always keep track of how much is being temporarily held
D
Do not enter deposits into the register until they are verified as available.
27

Which of the following statements best gives the reasons that a data usage bill for a smart phone is an essential (variable) expense?

A
It is an obligation to pay, but the spender has some control over its amount.
B
It cannot be eliminated in a later budget, in order to save money.
C
It is expected to be the same amount every month.
D
Bills for services rendered have a higher priority than any other type of expense.
28

Lucy will open a checking account and 3 savings accounts for different purposes (emergency fund, gift fund, and education fund). Which of the following items should not be among her main considerations in selecting these accounts?

A
The account recommended for somebody with different needs.
B
The amount of interest to be paid on deposits.
C
Any advantages of having all the accounts at the same bank.
D
Fees for having multiple savings accounts.
29

On his road trip, Leon stops to refuel and get some snacks. He has the following purchases:12 gallons of gas at $2.89 per gallon2 granola bars for $1.59 each1 apple for $0.892 bottles of vitamin water for $1.39 eachLeon must pay 7.5% sales tax on everything but the gas, which already has tax included in the per gallon price. If Leon paid $44.64, then he _____ for his purchase.

A
did not pay enough
B
paid the correct amount
C
paid $2.60 too much
D
paid $3.11 too much
30

Emma is ready to open a new checking account and is trying to decide between three banks using the chart below:Bank RBank SBank TNo monthly fees if balance stays above $300, otherwise $7 per monthNo monthly fees if check card is used more than 6 times per month, otherwise $10 monthly fee$5 monthly feeNo minimum balance$25 minimum balanceNo minimum balanceOnline banking servicesOnline banking servicesNo online banking optionsNon-Bank R ATM fee - $2.00 per transactionNon-Bank S ATM fee - $1.50 per transactionNon-Bank T ATM fee - $2.00 per transactionEmma 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?

A
Bank R
B
Bank S
C
Bank T
D
Bank R and S
31

The Changs updated their bedroom by purchasing a new lamp for $89.95 and a comforter set for $239.99. They paid % sales tax on their purchases. If the Changs paid $351.72 total, determine if they paid the correct amount.

Question illustration
A
The Changs family paid $0.33 too much for their purchases.
B
The Changs family paid $0.99 too much for their purchases.
C
The Changs family paid $5.94 too much for their purchases.
D
The Changs family paid the correct amount for their purchases.
32

Barry wants to open a checking account. He wants online services, and a debit card. He is looking at the following tables of fees from his employer's credit union, EECU, and a local bank, E-town Bank: 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?

Question illustration
A
$72
B
$78
C
$144
D
$24
33

Which of the following is most likely used by a seller to target an impulse buyer?

A
contest
B
coupon
C
display
D
rebate
34

Sharon wants to open a checking account from which to pay bills. She wants online services, and a debit card, which both banks provide for free. Based upon past experience, she expects to accidentally overdraft the account 1 time per year, due to unexpected charges and miscommunications. She expects no 2nd copies of statements, and to use network ATMs 4 times per month with either bank. She has $3300 in an emergency savings account at First State Bank, and thinks that the balance will be enough to cover overdrafts in the future if automatic transfers are made when needed. Based on the tables of fees, above, if Sharon chooses First State Bank, will it save her money over choosing Common Bank?

Question illustration
A
No, Common Bank will save Sharon more money.
B
Yes, First State Bank will save Sharon money.
C
No, First State Bank and Common Bank would have the same costs for Sharon.
D
No, costs cannot be estimated in advance, so this information cannot be used.
35

Cassandra is trying to think of a good way to keep her financial records. She makes a lot of purchases, using cash, debit cards, and credit cards about equally. When she gets home every day, she tends to be very tired and doesn’t like to do a lot of organized thinking. She tends to lose individual pieces of paper if she doesn’t file them immediately. What might be a good method for Cassandra to use?

A
Recording all of her daily expenditures in an organizational computer program.
B
Keeping and collecting receipts for everything she buys.
C
Tracking and collecting her bank and credit statements every month.
D
Carrying a notebook and immediately recording all of her transactions in it.
36

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?

A
The fees and services will make a much bigger difference than the type of interest while your balances are small.
B
The more that you expect to save, the more you should think about what effect the interest rates might have in respect to your values.
C
Choose the variable rate because if it goes up, you will make a lot of money that will pay for the fees.
D
With either bank, you will be earning a competitive rate of interest. You can re-evaluate once a year in comparison with other banks’ interest rates.
37

Assume that you are going to open a checking account. You are examining different banks and banking accounts to choose a bank account for your needs. Which of the following statements should not be one of your reasons for examining different banks?

A
Being more informed leads to being better prepared to make financial decisions.
B
Bank E offers you a chocolate bar for filling out an application for checking and credit at the same time.
C
Banks could have charges that you do not know about until reading carefully.
D
You will become more aware of how well the banks meet your particular needs.
38

Analyze the following budget, with an income of $600, to determine how much can be spent on food for the month. Month________Budgeted AmountCell Phone$65Food$___Entertainment$95College Savings$200Car Expenses - Gas, Insurance$160

A
$210 can be spent on food.
B
$145 can be spent on food.
C
$80 can be spent on food.
D
$260 can be spent on food.
39

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

A
Fees do not matter; only what the person has heard is a good feature in a bank.
B
This information can lead to a better match between account features and the person’s needs.
C
The best bank account is simply the best bank account for everybody.
D
Opening an account should be done by chance so that personal biases do not interfere.
40

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

A
Most credit unions require some kind of affiliation, but banks will let anyone with money open an account.
B
Credit unions usually require more paperwork than banks.
C
Banks can generally open an account immediately, but credit unions require a waiting period.
D
Banks can open accounts over the phone or online, but credit unions can only open accounts in person.

Did you find these answers helpful?