Using a Debit Card Answers

Which of the following most accurately describes when a debit card transaction takes effect?a.The transaction is completed almost immediately after making the purchase.b.The transaction takes two to three business days to clear.c.All debit card transactions are processed simultaneously at the end of the day.d.Debit card transactions are completed when you pay your monthly debit card bill.

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:DayDebit ($)Credit ($)Monday158---Tuesday6944Wednesday175---Thursday13138Friday---53Saturday2214If 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.a.$500b.$480c.$435d.$400

Day

What does PIN stand for?a.Principal Investment Numberb.Permission Initiating Numberc.Percent Increase Numberd.Personal Identification Number

Ronald is trying to reconstruct his spending pattern from May. He knows that he had $315 in his account on May 1, but after that, his receipts and balance statements are all scrambled. Here are Ronald’s records:DateTransaction TypeAmount ($)5/25Purchase665/18Purchase905/30Purchase1885/24Deposit1515/22Purchase1525/8Deposit1045/3Purchase1755/6Purchase82Assuming that this is a complete, if scrambled, record of Ronald’s May spending and that any overdraft fees incurred do not affect the running total, how many times did Ronald overdraw his account in May?a.Ronald never overdrew his account.b.Ronald only overdrew his account once.c.Ronald overdrew his account twice.d.Ronald overdrew his account more than twice.

Irving spent the day shopping and made the following purchases:ItemCost ($)Novel8.75Shirt21.66Lunch9.13Potted plant16.89When Irving was done, he checked his account balance and found he had a total of $95.06. How much money was in Irving’s account to begin with?a.$56.43b.$151.49c.$38.63d.$142.36

Bill has $270.61 in his account before making any transactions. Over the course of a week, Bill makes the following transactions:TransactionDebit ($)Credit ($)Paycheck---535.67Electric bill112.53---Groceries90.79---Savings bond---50.00Car payment225.65---At the end of the week, how much money is in Bill’s account? a.$518.10b.$156.70c.$427.31d.$608.89

Which statement or statements accurately describe a good way to avoid excessive service fees?I. Try to deposit money in large batches rather than in small amounts.II. Try to limit the number of withdrawals you make from out-of-network ATMs.III. Try to avoid using your debit card online.a.I and IIb.II onlyc.III onlyd.I and III

I.

What does PIN stand for?a.Principal Investment Numberb.Permission Initiating Numberc.Percent Increase Numberd.Personal Identification Number

Sue’s bank account has a balance of $899.83 before she starts spending money. She makes the following transactions:TransactionCost ($)Rent353.76Video game32.79Bike maintenance60.26Jacket55.62Rug80.40Night out35.77Sue is considering splitting the cost of a new TV with her roommate. Her share would be $305.22. Can Sue afford this?a.Yes, she can make the purchase and have money left over.b.Yes, but doing so will clear out her account.c.No, making that purchase will overdraw her account.d.No, she is overdrawn already.

Purchase

Faye’s bank charges her a $2.25 service fee every time she uses an out-of-network ATM. If Faye uses an out-of-network ATM twice a week, how much money does she pay in service fees every year?a.$240.25b.$225.00c.$200.75d.$234.00

Irving spent the day shopping and made the following purchases:ItemCost ($)Novel8.75Shirt21.66Lunch9.13Potted plant16.89When Irving was done, he checked his account balance and found he had a total of $95.06. How much money was in Irving’s account to begin with?a.$56.43b.$151.49c.$38.63d.$142.36

A point of sale transaction occurs when a debit card is used to purchase items at a grocery store. Please select the best answer from the choices provided.

Theresa has $708 in her account and wishes to throw a party. She plans to include the following:PurchaseCost ($)Decorations76.92Catering150.66Musicians242.15Refreshments123.36Venue260.47When 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?a.Venueb.Musiciansc.Cateringd.Refreshments

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

Ronald is trying to reconstruct his spending pattern from May. He knows that he had $315 in his account on May 1, but after that, his receipts and balance statements are all scrambled. Here are Ronald’s records:DateTransaction TypeAmount ($)5/25Purchase665/18Purchase905/30Purchase1885/24Deposit1515/22Purchase1525/8Deposit1045/3Purchase1755/6Purchase82Assuming that this is a complete, if scrambled, record of Ronald’s May spending and that any overdraft fees incurred do not affect the running total, how many times did Ronald overdraw his account in May?a.Ronald never overdrew his account.b.Ronald only overdrew his account once.c.Ronald overdrew his account twice.d.Ronald overdrew his account more than twice.

Which of the following most accurately describes when a debit card transaction takes effect?a.The transaction is completed almost immediately after making the purchase.b.The transaction takes two to three business days to clear.c.All debit card transactions are processed simultaneously at the end of the day.d.Debit card transactions are completed when you pay your monthly debit card bill.

A point of sale transaction occurs when a debit card is used to purchase items at a grocery store. Please select the best answer from the choices provided.

Sue’s bank account has a balance of $899.83 before she starts spending money. She makes the following transactions:TransactionCost ($)Rent353.76Video game32.79Bike maintenance60.26Jacket55.62Rug80.40Night out35.77Sue is considering splitting the cost of a new TV with her roommate. Her share would be $305.22. Can Sue afford this?a.Yes, she can make the purchase and have money left over.b.Yes, but doing so will clear out her account.c.No, making that purchase will overdraw her account.d.No, she is overdrawn already.

Day

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:DayDebit ($)Credit ($)Monday158---Tuesday6944Wednesday175---Thursday13138Friday---53Saturday2214If 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.a.$500b.$480c.$435d.$400

In what way is a debit card similar to a check? a. You must always provide a signature to use either. b. Both always take a few days to clear, so there is some float time until the payment goes through. c. Both pull money directly from a checking or savings account. d. Both charge interest on the purchases you make with them. Please select the best answer from the choices provided

Choose the circumstances in which a debit card can be used. I. Point-of-sales transactions II. ATM withdrawals a. I only b. II only c. I and II d. Neither I, nor II Please select the best answer from the choices provided

Which statement or statements accurately describe a good way to avoid excessive service fees?I. Try to deposit money in large batches rather than in small amounts.II. Try to limit the number of withdrawals you make from out-of-network ATMs.III. Try to avoid using your debit card online.a.I and IIb.II onlyc.III onlyd.I and III

Elizabeth has $252.00 in her account on Sunday. Over the next week, she makes the following changes to her balance via deposits and purchases:DayDebit ($)Credit ($)Monday114.60150.00Tuesday79.68---Wednesday161.39---Thursday57.40---Friday22.8575.00Saturday140.55---On what day does Elizabeth first get charged an overdraft fee?a.Wednesdayb.Thursdayc.Fridayd.Saturday

If your bank charges an out-of-network service fee of $3.00, and you withdraw $20 from each of three out-of-network ATMs, how much money in total will be removed from your account?a.$60b.$63c.$69d.$120

Bill has $270.61 in his account before making any transactions. Over the course of a week, Bill makes the following transactions:TransactionDebit ($)Credit ($)Paycheck---535.67Electric bill112.53---Groceries90.79---Savings bond---50.00Car payment225.65---At the end of the week, how much money is in Bill’s account? a.$518.10b.$156.70c.$427.31d.$608.89

Faye’s bank charges her a $2.25 service fee every time she uses an out-of-network ATM. If Faye uses an out-of-network ATM twice a week, how much money does she pay in service fees every year?a.$240.25b.$225.00c.$200.75d.$234.00