Tax Basics Answers

You have $3,750 to deposit. If you deposit the money in a savings account at your local bank, you will earn 1.75% annual interest and will be able to make ATM withdrawals at your bank’s ATMs. If you deposit the money in an online savings account, you will earn 3.25% interest, but you will be charged $4 every time you make an ATM withdrawal. Assuming that your ATM withdrawals do not reduce the amount of interest you earn, roughly how often must you make an ATM withdrawal for the local savings account to be a better deal than the online savings account? a. Thirteen times per year b. Once per month c. Every three weeks d. Every two months Please select the best answer from the choices provided

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 a. I only b. I and II c. II and III d. III only Please select the best answer from the choices provided

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? a.$24.7 billionb.$22.8 billionc.$20.9 billiond.$19.0 billion

What are you primarily doing when you reconcile your checking account?a.Making sure the bank spelled your name properly.b.Making sure that your records match your bank’s records.c.Writing down the transactions that your bank automatically records so you don’t have to.d.Calling the bank to check the dates on each transaction.

Jack is considering a list of features and fees for Current Bank: 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? a. $44 b. $104 c. $144 d. $176 Please select the best answer from the choices provided