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FHCE 3200 Module 4 Questions and
Correct Answers/ Latest Update / Already
Graded
Banking Account Types:
Ans: -checking accounts (convenient, safe, liquid)
-savings (available options for short term savings; preferably
safer low risk assets-usually generate low returns, but provides
safety of capital)
Checking accounts:
Ans: -named derived from an account that enables the account
holder to write checks
-a check is simply your written order to your bank to pay a third
party
-checks have changed very little over time
Federal Reserve Act of 1913
Ans: set in the motion the creation of a national system where
a check written in one city at one bank could be cashed in
another city at another bank
Bank Routing Number
All rights reserved © 2025/ 2026 |
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Ans: 9 digit code on lower left check; in combination with a
bank account, which act as a payment trail for transferred funds
___ of american's conduct business on daily basis without a checking
account.
Ans: 8%; these consumers are forced to us cash for most
purchases
3 major reasons to have a checking account:
Ans: -you need an account that can accept your wages and
salary income in the form of a direct deposit
-protection: checking accounts are insured by FDIC Deposit
Insurance Coverage, (coverage up to at least $250,000 in case
the bank was to go out of business)
-ability to use debit cards
What to look for in a bank:
Ans: -reasonable monthly fee (<$5/mon)
-no monthly fees for debit cards
-free use of in-network ATMs
-low minimum balance requirements
All rights reserved © 2025/ 2026 |
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-accounts that allow unlimited withdrawals and checks on a
monthly basis
-requires no minimum, or a smaller dollar amount
Debit Cards:
Ans: a substitute for using written checks, and cash; electronic
transactions account for more transactions than transactions
that involve a written check
Credit Scores & Credit Reports
Ans: used by merchants, lenders, rental agencies, employ ers,
businesses, and governmental organizations as a tool to screen
the credit-worthiness of people
What do financial institutions use credit scores for?
Ans: to identify people who are a low credit risk from people
who are a high credit risk
Three major credit rating agencies:
Ans: -experian
-trans union
All rights reserved © 2025/ 2026 |
FHCE 3200 Module 4 Questions and
Correct Answers/ Latest Update / Already
Graded
Banking Account Types:
Ans: -checking accounts (convenient, safe, liquid)
-savings (available options for short term savings; preferably
safer low risk assets-usually generate low returns, but provides
safety of capital)
Checking accounts:
Ans: -named derived from an account that enables the account
holder to write checks
-a check is simply your written order to your bank to pay a third
party
-checks have changed very little over time
Federal Reserve Act of 1913
Ans: set in the motion the creation of a national system where
a check written in one city at one bank could be cashed in
another city at another bank
Bank Routing Number
All rights reserved © 2025/ 2026 |
, Page |2
Ans: 9 digit code on lower left check; in combination with a
bank account, which act as a payment trail for transferred funds
___ of american's conduct business on daily basis without a checking
account.
Ans: 8%; these consumers are forced to us cash for most
purchases
3 major reasons to have a checking account:
Ans: -you need an account that can accept your wages and
salary income in the form of a direct deposit
-protection: checking accounts are insured by FDIC Deposit
Insurance Coverage, (coverage up to at least $250,000 in case
the bank was to go out of business)
-ability to use debit cards
What to look for in a bank:
Ans: -reasonable monthly fee (<$5/mon)
-no monthly fees for debit cards
-free use of in-network ATMs
-low minimum balance requirements
All rights reserved © 2025/ 2026 |
, Page |3
-accounts that allow unlimited withdrawals and checks on a
monthly basis
-requires no minimum, or a smaller dollar amount
Debit Cards:
Ans: a substitute for using written checks, and cash; electronic
transactions account for more transactions than transactions
that involve a written check
Credit Scores & Credit Reports
Ans: used by merchants, lenders, rental agencies, employ ers,
businesses, and governmental organizations as a tool to screen
the credit-worthiness of people
What do financial institutions use credit scores for?
Ans: to identify people who are a low credit risk from people
who are a high credit risk
Three major credit rating agencies:
Ans: -experian
-trans union
All rights reserved © 2025/ 2026 |
