Chapter 3 - Personal Banking & Current Accounts

Question 1

List 6 services available to a person with a Current Account

Answer 1

ATM Cards
Debit Cards
Standing orders
Direct debits
Credit transfers
Cheque book
Bank drafts 
Over drafts
Regular Bank Statements

Question 2

List 3 things you can do with an ATM card

Answer 2

Withdraw cash
Pay bills electronically
Check the account balance
Order a bank statement
Purchase credit for mobile phones

Question 3

Briefly explain the purpose of a credit card and how a consumer can use it

Answer 3

Debit cards are provided by banks to holders of current accounts. They allow money to be transferred from a customers account into a retailers bank account

Question 4

Explain the difference between a standing order and a direct debit

Answer 4

Standing orders are planned electronic payments of a fixed amount of money to someone else’s account.
A direct debit are automatic payments of a variable amount of money at regular times to someone else’s account

Question 5

What is a credit transfer?

Answer 5

Credit transfers are a way of making once off electronic money transfers from your account to someone else’s account

Question 6

What is online banking?

Answer 6

Online banking allows people to access their account online

Question 7

List 3 things you should ensure when online banking online.

Answer 7

Never reveal personal bank details
Secure internet connection
Internet security software