Chapter 9 Vocab Flashcards
Written order to the bank to pay the amount stated to the person or business named on it
Check
Money may be withdrawn at any time
Checking account
“On demand”
Demand deposit
Time to cash a check
Before 6 months
Check has been processed and cleared your account
GOOD THING
Canceled check
Check written for more money than your account contains
Bank that doesn’t honor checks usually stamps the check with “not sufficient funds” and returns check to payees bank
Overdraft/NSF check
Writing a check and hoping to deposit money to cover it before the check clears
Illegal in most states
Floating a check
Writing a check but putting a future date in the check instead of the date the person writes the check
Postdating a check
Filled it out incorrectly= write VOID across it and file it away
Voided check
Form contains personal info and provides the official signature that the bank can compare to the signature you write on checks
To open checking account
Signs authorized form
2 names on 1 account
Joint account
1 person passes the other gets the account
Survivorship
Person or company to whom the check is made out to
Payee
Person who owns the amount and signs the check
Maker (drawer)
Booklet used to record checking account transactions
Checkbook register
Matching your checkbook register with the bank statement
Bank reconciliation
Signature of the payee written exactly as his or hers name appears on the front of the others
Bank endorsement
Endorsement that transfers the right to cash the check to someone else
Endorsement in full
Special endorsement
Restricts or limits the use of a check
Restrictive endorsement
Both payees must sign the back of the check
Joint endorsement
Offers every possible kind of service savings, checking accounts, credit card and safe deposit
Full service bank
Protects the deposits of costumers against loss up the $250, 000 per account
FCIC
Insured credit union accounts for $250,000
NUCA
Personal check that the bank guarantees or certified to be good
Certified check
Check written by a bank on its own funds
bank draft
Cashiers check
Like a check, excerpt that it can never be bounded
Money orders
Plastic card that deducts money from a checking account almost immediately to pay for purchases
Debit cards
Checks will be covered even if you have insufficient funds in your checking account
Overdraft protection
Must: card that is electronically
coded
Know your pin
Transaction- debit card, withdraw cast
Visa/MasterCard, receive cash advance electronicallyAutomated teller machines (ATM)
Ranges 4 to 6 digits
Unique
Pin
Computer based system that enables you to more money from one account to another without writing a check or exchanging cash
Electronic funds transfer
EFT
Request that the bank not honor a specific check
Stop payment orders
