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Personal Finance > Chapter 9 > Flashcards

Chapter 9 Flashcards

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1
Q

An ….. is a banking service in which a customer deposits money and writes checks to withdraw at his or her convenience -

A

Checking account

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2
Q

An account on which the depositor can withdraw money at any time is known as …

A

Demand deposit

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3
Q

An ….. occurs when a depositor writes a check on an account that is insufficient to cover a check

A

Overdraft

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4
Q

The person to whom a check is made payable is called..

A

Payee

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5
Q

The person authorized to write checks on an account is called the

A

Drawer, maker

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6
Q

An ….. endorsement requires two signatures

A

Joint

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7
Q

Paper money in the form of dollar bills, fives, tens, and so on, is called

A

Currency

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8
Q

An …. is the record of checks written and deposits made in a checking account, kept by the depositor

A

Checkbook register

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9
Q

Is sent by the bank regularly, listing checks and deposits processed by the bank, as well as charges and credits to an account

A

Bank statement

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10
Q

A ….. check is one that has been processed by the bank and has been subtracted from the depositors account

A

Cancelled

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11
Q

The payee simply signing his or her name as it appears on the front of the check is making an …… endorsement

A

Blank

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12
Q

A ……. endorsement, such as “For Deposit Only”, limits the negotiability of a check

A

Restrictive

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13
Q

….. cards provide immediate deductions from your checking account when you make a purchase

A

Debit

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14
Q

Checking accounts at credit unions are called

A

Share accounts

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15
Q

To write a check when you know there are temporarily not enough funds to cover the check is called

A

Floating checks

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16
Q

A …. check is guaranteed by the bank

A

Certified checks

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17
Q

A check drawn against the bank’s own funds is an …

A

Cashiers check

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18
Q

The process of matching your checkbook register with the bank statement is called

A

Reconciliation

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19
Q

A request to the bank not to cash a check is a …

A

Stop payment order

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20
Q

An endorsment signing a check over to a third person is an

A

Special endorsement

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21
Q

Most financial insitutions offer online and telephone banking services

T or F

A

True

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22
Q

Electronic funds tranfer involves the use of …. machines

A

ATM

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23
Q

T or F

It is important to reconcile your checkbook immediately when you receive the bank statement

A

True

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24
Q

T or F

When a check you have issued has been lost or stolen, you should request a stop payment order

A

True

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25
Q

To open an account, either checking or saving, you first must fill out and sign a signature authorization form

T or F

A

True

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26
Q

T or F

Debit card is the same as a credit card

A

False

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27
Q

Do financial institutions charge A for for checking account services?

A

Yes

28
Q

T or F

Interest-bearing accounts pay interest when the minimum balance is maintained

A

True

29
Q

When online banking, can you make deposits and request cashiers checks?

A

No

30
Q

What is a check written by a bank on its own funds called

A

Cashiers check

31
Q

Checks over ….. old may not be honored by a bank

A

Six months

32
Q

Insurance up to ……. on each account is provided for depositors by the Fdic

A

250,000

33
Q

When payment on a check is prevented by the bank before it can be made to the payee, it is ….

A

A stop payment order

34
Q

Is a personal check that the bank guarantees to be good

A

Certified check

35
Q

It is a safe place to keep stocks and bonds, deeds and other import documents

A

Safe deposit box

36
Q

A ….. account charges customers fees based on the number of checks written each month ; a minimum balance is usually not required

A

Special

37
Q

They allow depositors to write checks to make payments -

Transferring money to another w/o going to the bank

A

Checking accounts

38
Q

a check which has cleared (made its way through the system - money has been taken out of your account)

A

Cancelled check

39
Q

When opening a checking account you need ……..

A

Signature authorization form

40
Q

When check is written for more money than is in your checking account

Means dont have enough money

A

Overdraft

41
Q

Its writing a check hoping the funds will get there before it gets cashed

A

Floating check

42
Q

What are the 3 responsibilites of an overdraft -

A
  1. Know your balance
  2. How to write checks accurately
  3. Know terms affiliated w/ your account
43
Q

3 things of using your checking accounts-

A
  1. Writing checks
  2. Making deposits
  3. Using a checkbook register
44
Q

You have to keep a record when you ….

A

Make deposits

45
Q

Its the record of money going in and out of checking account

A

A checkbook

46
Q

Its just signing your name -

A

Blank endorsement

47
Q

Its where you can transfer the ownership of a check -

A

Special endorsement

48
Q

It restricts further transfer of checks

A

Restrictive endorsement

49
Q

Three types of endorsements -

A

Blank
Special
Restrictive

50
Q

Name the 5 types of checking accounts

A 
Joint
Special
Standard (the regular accounts)
 Interest-bearing
Shared
51
Q

Its an account w two or more ppl -

A

Joint account

52
Q

Its an account which doesnt have a specific minimum balance

A

Special accounts

53
Q

Its the regular accounts ; most people have it

A

Standard

54
Q

Its an account that bears interest -

A

Interest-bearing

55
Q

Its an account in a credit union -

A

Shared

56
Q

Are checks that the bank guarantees will go through

A

Guaranteed - payment checks

57
Q

People get this if they dont have a checking account (they cant bounce checks)

A

Money orders

58
Q

Instead of bouncing a check, they make you pay interest until you pay it back
-make sure youur account has it

A

Overdraft protection

59
Q

Most banks offer these

You put money into a trust

A

Loans and trusts

60
Q

When you tell the bank to dont cash a check

-if a check gets lost is an example

A

Stop payment orders

61
Q

Signs and stamps a contract and then it is notarized

A

Notary public

62
Q

When you pay a fee & you put import files in these

A

Safe deposit boxes

63
Q

Name the bank fees -

A 
Loan
Trustee
Check cashing fee for non customers
Per check fee
Mantience fee
Check printing 
Atm transaction
64
Q

When someone dies the money in the bank is given to give to their family

A

Trusts

65
Q

Student loans, car loans, house loans

A

Loans

Personal Finance (8 decks)

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