Chapter 9 Vocab

Question 1

Written order to the bank to pay the amount stated to the person or business named on it

Answer 1

Check

Question 2

Money may be withdrawn at any time
Checking account
“On demand”

Answer 2

Demand deposit

Question 3

Time to cash a check

Answer 3

Before 6 months

Question 4

Check has been processed and cleared your account

GOOD THING

Answer 4

Canceled check

Question 5

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

Answer 5

Overdraft/NSF check

Question 6

Writing a check and hoping to deposit money to cover it before the check clears
Illegal in most states

Answer 6

Floating a check

Question 7

Writing a check but putting a future date in the check instead of the date the person writes the check

Answer 7

Postdating a check

Question 8

Filled it out incorrectly= write VOID across it and file it away

Answer 8

Voided check

Question 9

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

Answer 9

Signs authorized form

Question 10

2 names on 1 account

Answer 10

Joint account

Question 11

1 person passes the other gets the account

Answer 11

Survivorship

Question 12

Person or company to whom the check is made out to

Answer 12

Payee

Question 13

Person who owns the amount and signs the check

Answer 13

Maker (drawer)

Question 14

Booklet used to record checking account transactions

Answer 14

Checkbook register

Question 15

Matching your checkbook register with the bank statement

Answer 15

Bank reconciliation

Question 16

Signature of the payee written exactly as his or hers name appears on the front of the others

Answer 16

Bank endorsement

Question 17

Endorsement that transfers the right to cash the check to someone else
Endorsement in full

Answer 17

Special endorsement

Question 18

Restricts or limits the use of a check

Answer 18

Restrictive endorsement

Question 19

Both payees must sign the back of the check

Answer 19

Joint endorsement

Question 20

Offers every possible kind of service savings, checking accounts, credit card and safe deposit

Answer 20

Full service bank

Question 21

Protects the deposits of costumers against loss up the $250, 000 per account

Answer 21

FCIC

Question 22

Insured credit union accounts for $250,000

Answer 22

NUCA

Question 23

Personal check that the bank guarantees or certified to be good

Answer 23

Certified check

Question 24

Check written by a bank on its own funds

bank draft

Answer 24

Cashiers check

Question 25

Like a check, excerpt that it can never be bounded

Answer 25

Money orders

Question 26

Plastic card that deducts money from a checking account almost immediately to pay for purchases

Answer 26

Debit cards

Question 27

Checks will be covered even if you have insufficient funds in your checking account

Answer 27

Overdraft protection

Question 28

Must: card that is electronically   
           coded
           Know your pin
Transaction- debit card, withdraw cast
                       Visa/MasterCard, receive cash advance electronically

Answer 28

Automated teller machines (ATM)

Question 29

Ranges 4 to 6 digits

Unique

Answer 29

Pin

Question 30

Computer based system that enables you to more money from one account to another without writing a check or exchanging cash

Answer 30

Electronic funds transfer

EFT

Question 31

Request that the bank not honor a specific check

Answer 31

Stop payment orders