Chapter 29: Banking Procedures

Question 1

authorization

Answer 1

the giving of authority

Question 2

automated teller machine (ATM)

Answer 2

a banking machine operated by inserting a credit or bank card and entering a personal identification number (PIN) code. Deposits, transfers, withdrawals, and other banking functions can be performed at the ATM location 24 hours a day, seven days a week.

Question 3

bank statement

Answer 3

a record of an account sent to the account holder, usually on a monthly basis, showing the beginning balance, all deposits made, all checks drawn, all bank service charges and interest earned, and the closing balance.

Question 4

currency

Answer 4

any form of money; the name given to the cash we use in our society

Question 5

denomination

Answer 5

a category or classification of currency

Question 6

deposit

Answer 6

to entrust money to a bank or other institution; money (cash or checks) put into an account, increasing the account balance.

Question 7

deposit record

Answer 7

a record of a financial deposit that is given by the bank to the customer at the time of the deposit

Question 8

deposit slip

Answer 8

a slip accompanying a bank deposit and containing an itemized list of checks or cash deposited, the date, and the depositor’s signature

Question 9

direct deposit

Answer 9

when an amount is sent electronically by the payer directly into a savings or checking account of the payee

Question 10

endorsement

Answer 10

the payee’s signature on the back of a check. It is a transfer of title on the check to the bank in exchange for the amount of money on the face of the check

Question 11

endorser

Answer 11

signature on the back of the check of the payee

Question 12

e-statements

Answer 12

a paperless bank statement

Question 13

mobile banking

Answer 13

a banking method that allows the bank customer to perform banking actions on their cell phone or other mobile device

Question 14

negotiable

Answer 14

capable of being discussed and terms arranged; a check is a negotiable instrument drawn against deposited funds to pay a specified amount to a person or business upon demand

Question 15

online banking

Answer 15

the practice of making bank transactions or paying bills electronically via the Internet

Question 16

outstanding check

Answer 16

a check you have written that does not appear on your bank statement because the payee has not yet cashed the check

Question 17

overdraft

Answer 17

an amount beyond what is currently in the account

Question 18

payee

Answer 18

a person to whom money is paid

Question 19

payer

Answer 19

the person who signs the check or the corporation that pays it. The payer is also known as the maker.

Question 20

reconciling

Answer 20

process to bring checkbook and bank statement into agreement

Question 21

register

Answer 21

a formal or official recording of items, names, or actions; a record of money that has been spent; a record showing the check number, person to whom the check is paid, amount of the check, date, and balance

Question 22

stop payment

Answer 22

a method by which the maker of a check may stop payment of a check(s) written

Question 23

transactions

Answer 23

dealing accomplished

Question 24

withdrawal

Answer 24

a removal of something that has been deposited