Module 03 Quiz

1. If you write a check for more dollars than you have in your account, which of the following might occur as a result? Choose all that apply.
   • When the recipient deposits the check, it will be rejected and he will get nothing.
   • When the recipient deposits the check, he will get credited a partial amount, up to the amount you have in your account.
   • When the recipient deposits the check, he will get the full amount, if sender has overdraft protection.
   • When the recipient deposits the check, he will get charged a returned item fee by his bank.
2. True or False: When someone pays you by check, it is safe to hand over the goods as soon as you deposit the check at your bank.
3. When you withdraw money from an ATM, which of the following can happen? Choose all that apply.
   • You can withdraw unlimited amounts from the ATM, up to the balance of your account.
   • You can get charged a fee by your bank, if you use an ATM owned by someone else.
   • You can get charged a fee by the operator of the ATM.
   • You can get charged an overdraft fee by your bank, if you withdraw more than your balance and you enabled overdraft.
4. True or False: You can use the free ACH service to send money from US to Europe.
5. Which of the following is the primary goal of a bank?
   • to provide transaction intermediation services to its customers
   • to minimize the costs of transactions for account holders
   • to make money for the owners of the bank
   • to create money
6. Your bank charges a $30 overdraft fee.

   You have $100 in your account, and by the end of the day three withdrawal transactions post to your account, in the amount of $10, $50, and $120.

   How much in total overdraft fees will the bank charge you?