Your Bank,First Bank,charges You $1

question 23

Multiple Choice

Your bank,First Bank,charges you $1.50 every time you use an ATM that is not owned by them.Unfortunately,there is no First Bank ATM near your school.There is a Second Bank ATM in the Student Center,which you use several times a week to withdraw $10 at a time for lunch,video games,etc.What is the best piece of advice regarding these transactions?

• A)They will make it hard to balance your account since these transactions won't show up on your monthly statements.
• B)They're OK as long as you enter the transactions in your check register.
• C)Avoid them since you are effectively paying 15% interest to access your cash.
• D)Make sure you have overdraft protection on your account.

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Definitions:

Dividend Per Share

The amount of dividend a company pays out for each share of its stock, typically expressed on an annual basis.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, although the overall value of the shareholder's equity remains the same.

Stock Price

The cost of purchasing a share of a company in the stock market; it fluctuates based on supply and demand.

Dividend Income

Earnings distributed to shareholders, usually derived from the company's profits, for holding the company's stock.