Chapter 9: Banking

Question 1

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

Answer 1

Checking account

Question 2

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

Answer 2

Demand deposit

Question 3

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

Answer 3

Overdraft

Question 4

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

Answer 4

Payee

Question 5

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

Answer 5

Drawer, maker

Question 6

An ….. endorsement requires two signatures

Answer 6

Joint

Question 7

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

Answer 7

Currency

Question 8

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

Answer 8

Checkbook register

Question 9

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

Answer 9

Bank statement

Question 10

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

Answer 10

Cancelled

Question 11

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

Answer 11

Blank

Question 12

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

Answer 12

Restrictive

Question 13

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

Answer 13

Debit

Question 14

Checking accounts at credit unions are called

Answer 14

Share accounts

Question 15

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

Answer 15

Floating checks

Question 16

A …. check is guaranteed by the bank

Answer 16

Certified checks

Question 17

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

Answer 17

Cashiers check

Question 18

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

Answer 18

Reconciliation

Question 19

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

Answer 19

Stop payment order

Question 20

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

Answer 20

Special endorsement

Question 21

Most financial insitutions offer online and telephone banking services

T or F

Answer 21

True

Question 22

Electronic funds tranfer involves the use of …. machines

Answer 22

ATM

Question 23

T or F

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

Answer 23

True

Question 24

T or F

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

Answer 24

True

Question 25

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

Answer 25

True

Question 26

T or F Debit card is the same as a credit card

Answer 26

False

Question 27

Do financial institutions charge A for for checking account services?

Answer 27

Yes

Question 28

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

Answer 28

True

Question 29

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

Answer 29

No

Question 30

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

Answer 30

Cashiers check

Question 31

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

Answer 31

Six months

Question 32

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

Answer 32

250,000

Question 33

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

Answer 33

A stop payment order

Question 34

Is a personal check that the bank guarantees to be good

Answer 34

Certified check

Question 35

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

Answer 35

Safe deposit box

Question 36

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

Answer 36

Special

Question 37

They allow depositors to write checks to make payments - | Transferring money to another w/o going to the bank

Answer 37

Checking accounts

Question 38

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

Answer 38

Cancelled check

Question 39

When opening a checking account you need ........

Answer 39

Signature authorization form

Question 40

When check is written for more money than is in your checking account Means dont have enough money

Answer 40

Overdraft

Question 41

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

Answer 41

Floating check

Question 42

What are the 3 responsibilites of an overdraft -

Answer 42

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

Question 43

3 things of using your checking accounts-

Answer 43

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

Question 44

You have to keep a record when you ....

Answer 44

Make deposits

Question 45

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

Answer 45

A checkbook

Question 46

Its just signing your name -

Answer 46

Blank endorsement

Question 47

Its where you can transfer the ownership of a check -

Answer 47

Special endorsement

Question 48

It restricts further transfer of checks

Answer 48

Restrictive endorsement

Question 49

Three types of endorsements -

Answer 49

Blank Special Restrictive

Question 50

Name the 5 types of checking accounts

Answer 50

``` Joint Special Standard (the regular accounts) Interest-bearing Shared ```

Question 51

Its an account w two or more ppl -

Answer 51

Joint account

Question 52

Its an account which doesnt have a specific minimum balance

Answer 52

Special accounts

Question 53

Its the regular accounts ; most people have it

Answer 53

Standard

Question 54

Its an account that bears interest -

Answer 54

Interest-bearing

Question 55

Its an account in a credit union -

Answer 55

Shared

Question 56

Are checks that the bank guarantees will go through

Answer 56

Guaranteed - payment checks

Question 57

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

Answer 57

Money orders

Question 58

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

Answer 58

Overdraft protection

Question 59

Most banks offer these | You put money into a trust

Answer 59

Loans and trusts

Question 60

When you tell the bank to dont cash a check | -if a check gets lost is an example

Answer 60

Stop payment orders

Question 61

Signs and stamps a contract and then it is notarized

Answer 61

Notary public

Question 62

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

Answer 62

Safe deposit boxes

Question 63

Name the bank fees -

Answer 63

``` Loan Trustee Check cashing fee for non customers Per check fee Mantience fee Check printing Atm transaction ```

Question 64

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

Answer 64

Trusts

Question 65

Student loans, car loans, house loans

Answer 65

Loans