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2.02BM Checking Accounts

Last updated 2 months ago
23 questions
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ACTIVITY: MOVE: Your Account Balance 20 min

Checking accounts are a great way to store and access your money for day-to-day transactions like paying for groceries or depositing your paycheck. Follow your teacher’s directions to complete the activity about the types of transactions that might change your bank account balances.
Learn It

INFOGRAPHIC: Checking Accounts: How You Can Access Your Money 6 min

Checking accounts are a great option for storing your money for short term and day to day use.  Read the section of the infographic titled Day to Day Banking up to Checking or Savings: What’s the Difference? and use it to answer the questions.

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The article describes ways to put money into your checking account.
(Pic in book)
Place a checkmark next to each method that you have personally used and a question mark next to those that you want to know more about.

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There are also many different options for taking money out of your checking account.  
(Pic in book)
Place a checkmark next to each method that you have personally used and a question mark next to those that you want to know more about.

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Which withdrawal and deposit method do you think you would use most in your own life?

EDPUZZLE: Are Credit Unions Better Than Big Banks? 9 min You can open a checking account at many different financial institutions.  One of those options is a credit union.  Watch this video and follow your teacher's directions to answer the questions either in your student activity packet or within the EdPuzzle itself.

NOTE: EdPuzzle videos shuffle answer choices and do not always match the order provided here.

2

Which are two advantages of having an account at a local community bank versus a national bank?

A. Community banks are typically larger and more well-known than national banks

B. Community banks typically have LOWER fees and charges when compared to a national bank

C. Community banks typically have HIGHER fees and charges when compared to a national bank

D. Community banks typically give back and support the local community

1

True or False: When you deposit your money at a community or online bank, your money is insured by the FDIC up to $250,000.

4

What questions should you ask before opening an account at a national bank, community bank, or credit union? (choose all correct answers)

A. What type of fees are there with this account?

B. Is there a fee for using an ATM? If so, how much?

C. Is there a minimum balance requirement with this account?

D. Do you offer online banking or mobile banking?

ARTICLE: 10 Reasons to Open a Checking Account 8 min You might be wondering why you even need a checking account. Why not just use cash?  Skim the 10 reasons in this article and their descriptions. Then, answer the questions.
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Which 4 reasons to open an account would benefit you, personally, the most?_______ _______ _______ _______
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What is the benefit of making sure your account is FDIC/NCUA insured?_______
VIDEO: How To Read Your Bank Statement And Why It's Important To Do So 3 min With your checking account, you’ll receive a bank statement that you will want to review on a regular basis. Watch the video to familiarize yourself with what is included on a bank statement. Then, answer the questions.
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Why is it important to review your bank statement each month?

In this activity, you will explore a checking account statement in more detail to understand its various components. Then, you will answer questions using the sample statement below.

Part I: Read The Fine Print

Analyze this sample checking account statement and answer the questions that follow. *There is a copy of this in your notes*


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How frequently does John typically receive account statements from his bank?
  1. Daily
  2. Weekly
  3. Monthly
  4. Annually

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How much did John Jones have in his account on the first day of the statement period?
A. -$72.47
B. $0.55
C. $694.81
D. $1,442.61

1

John has two ATM transactions but only one of them has a fee (Interac). Why?
A. Interac is an out-of-network ATM and First Bank charges customers if they use out-of-network ATMs.
B. First Bank charges customers for using their ATMs.
C. Banks charge fees if you take out less than $100 at an ATM machine.
D. The first ATM transaction is free but all additional ATM transactions have a fee.

1

Most employers will pay their employees by directly depositing their paycheck into their checking account. According to his checking account statement, John was paid ________________ every __________ .
  1. $200.00, 3 weeks
  2. $694.81, 2 weeks
  3. $300.00, 1 month
  4. $100.00, 2 weeks

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What is the impact of the Online Funds Transfer - From Savings that appears on John's statement?
A. John's Savings account balance declined by $50 and his Checking account balance increased by $50
B. John's Savings account balance increased by $50 and his Checking account balance declined by $50
C. John's Savings account balance had no change and his Checking account balance declined by $50
D. John's Savings account balance increased by $50 and his Checking account balance had no change

1

Which statement is true regarding Check No. - 409?
A. This check likely came from John’s employer.
B. This check was written by John and paid to another person or business.
C. This check caused John to overdraw his checking account.
D. This check added $100 to John’s account.

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Which transaction caused John to overdraw his account?
  1. The Online Bill Payment for $146.67
  2. Check No. 409 for $100
  3. Check No. 410 for $710.49
  4. The Overdraft Fee of $35

1

What was the result of John overdrawing his checking account?

A. John’s payment was greater than the balance he had available in his account so the bank will deposit $237.81 into John’s account so he can pay his bills.

B. John’s payment was greater than the balance he had available in his account so he was charged a $35 fee.

C. John’s payment was greater than the balance he had available in his account so he was charged a $5 monthly maintenance fee.

D. John’s payment was greater than the balance he had available in his account so the bank will transfer $35 from a linked account.

1

Which fees was John charged on his checking account during this statement period?
  1. Online Transfer Fee, Overdraft Fee, Per Check Fee
  2. Per Check Fee, ATM Fee, Overdraft Fee, Maintenance Fee
  3. Online Transfer Fee, ATM Fee, Maintenance Fee
  4. ATM Fee, Overdraft Fee, Maintenance Fee

1

What is the mathematical formula that you would use to describe the financial activity on a bank statement?

A. Ending Balance = Previous Balance + Deposits + Withdrawals

B. Ending Balance = Previous Balance - Deposits + Withdrawals

C. Ending Balance = Previous Balance + Deposits - Withdrawals

D. Ending Balance = Previous Balance - Deposits - Withdrawals

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Part II: What Did You Learn?
Use what you learned from analyzing the checking account statement to answer this question.

Why is it important to review your checking account statement?_______ What fees might this help you avoid? _______ Explain your answer._______
Exit Ticket
1

All of the following are reasons to open a checking account EXCEPT…
A. Making it easier to pay bills
B. The ability to make purchases with a debit card
C. Access to cash at an ATM
D. Earn interest on your deposits

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Which of the following is usually a benefit of being a member at a credit union?
1. Higher interest rates and lower fees
2. Lower interest rates and higher fees
3. Higher interest rates and higher fees
4. Lower interest rates and lower fees

1

Daisy reads her bank statement and finds an error. She should…
A. Do nothing. The bank will correct the error at the end of the month.
B. Call the FDIC. She is insured up to $250,000.
C. Call the bank. The bank will investigate the transaction to see if it was an error.
D. Assume that it’s a transaction that she made and forgot about.