Chapter 9: Banking Flashcards
An ….. is a banking service in which a customer deposits money and writes checks to withdraw at his or her convenience -
Checking account
An account on which the depositor can withdraw money at any time is known as …
Demand deposit
An ….. occurs when a depositor writes a check on an account that is insufficient to cover a check
Overdraft
The person to whom a check is made payable is called..
Payee
The person authorized to write checks on an account is called the
Drawer, maker
An ….. endorsement requires two signatures
Joint
Paper money in the form of dollar bills, fives, tens, and so on, is called
Currency
An …. is the record of checks written and deposits made in a checking account, kept by the depositor
Checkbook register
Is sent by the bank regularly, listing checks and deposits processed by the bank, as well as charges and credits to an account
Bank statement
A ….. check is one that has been processed by the bank and has been subtracted from the depositors account
Cancelled
The payee simply signing his or her name as it appears on the front of the check is making an …… endorsement
Blank
A ……. endorsement, such as “For Deposit Only”, limits the negotiability of a check
Restrictive
….. cards provide immediate deductions from your checking account when you make a purchase
Debit
Checking accounts at credit unions are called
Share accounts
To write a check when you know there are temporarily not enough funds to cover the check is called
Floating checks
A …. check is guaranteed by the bank
Certified checks
A check drawn against the bank’s own funds is an …
Cashiers check
The process of matching your checkbook register with the bank statement is called
Reconciliation
A request to the bank not to cash a check is a …
Stop payment order
An endorsment signing a check over to a third person is an
Special endorsement
Most financial insitutions offer online and telephone banking services
T or F
True
Electronic funds tranfer involves the use of …. machines
ATM
T or F
It is important to reconcile your checkbook immediately when you receive the bank statement
True
T or F
When a check you have issued has been lost or stolen, you should request a stop payment order
True
To open an account, either checking or saving, you first must fill out and sign a signature authorization form
T or F
True
T or F
Debit card is the same as a credit card
False
Do financial institutions charge A for for checking account services?
Yes
T or F
Interest-bearing accounts pay interest when the minimum balance is maintained
True
When online banking, can you make deposits and request cashiers checks?
No
What is a check written by a bank on its own funds called
Cashiers check
Checks over ….. old may not be honored by a bank
Six months
Insurance up to ……. on each account is provided for depositors by the Fdic
250,000
When payment on a check is prevented by the bank before it can be made to the payee, it is ….
A stop payment order
Is a personal check that the bank guarantees to be good
Certified check
It is a safe place to keep stocks and bonds, deeds and other import documents
Safe deposit box
A ….. account charges customers fees based on the number of checks written each month ; a minimum balance is usually not required
Special
They allow depositors to write checks to make payments -
Transferring money to another w/o going to the bank
Checking accounts
a check which has cleared (made its way through the system - money has been taken out of your account)
Cancelled check
When opening a checking account you need ……..
Signature authorization form
When check is written for more money than is in your checking account
Means dont have enough money
Overdraft
Its writing a check hoping the funds will get there before it gets cashed
Floating check
What are the 3 responsibilites of an overdraft -
- Know your balance
- How to write checks accurately
- Know terms affiliated w/ your account
3 things of using your checking accounts-
- Writing checks
- Making deposits
- Using a checkbook register
You have to keep a record when you ….
Make deposits
Its the record of money going in and out of checking account
A checkbook
Its just signing your name -
Blank endorsement
Its where you can transfer the ownership of a check -
Special endorsement
It restricts further transfer of checks
Restrictive endorsement
Three types of endorsements -
Blank
Special
Restrictive
Name the 5 types of checking accounts
Joint Special Standard (the regular accounts) Interest-bearing Shared
Its an account w two or more ppl -
Joint account
Its an account which doesnt have a specific minimum balance
Special accounts
Its the regular accounts ; most people have it
Standard
Its an account that bears interest -
Interest-bearing
Its an account in a credit union -
Shared
Are checks that the bank guarantees will go through
Guaranteed - payment checks
People get this if they dont have a checking account (they cant bounce checks)
Money orders
Instead of bouncing a check, they make you pay interest until you pay it back
-make sure youur account has it
Overdraft protection
Most banks offer these
You put money into a trust
Loans and trusts
When you tell the bank to dont cash a check
-if a check gets lost is an example
Stop payment orders
Signs and stamps a contract and then it is notarized
Notary public
When you pay a fee & you put import files in these
Safe deposit boxes
Name the bank fees -
Loan Trustee Check cashing fee for non customers Per check fee Mantience fee Check printing Atm transaction
When someone dies the money in the bank is given to give to their family
Trusts
Student loans, car loans, house loans
Loans
