TOPIC 1, BASIC DOCUMENTS AND TRANSACTIONS RELATED TO BANK DEPOSITS

Question 1

The simplest bank account.

Answer 1

Savings Account

Question 2

These are intended to provide an incentive for
the depositor to save money

Answer 2

Savings Account

Question 3

The depositor can make deposits and
withdrawals using the form provided by the bank

Answer 3

Savings Account

Question 4

• Banks usually pay an interest rate that is higher
  than a checking account or a current account.

Answer 4

Savings Account

Question 5

Some savings accounts have a passbook,
in which transactions are logged in a
a small booklet that the depositor keeps.

Answer 5

Savings Account

Question 6

Money held under a checking account can be
withdrawn through the issuance of a check.

Answer 6

Checking or Current Account

Question 7

Banks usually allow numerous withdrawals and
unlimited deposit under this type of account.

Answer 7

Checking or Current Account

Question 8

The interest rate for a checking account is usually
lower as compared to a savings account.

Answer 8

Checking or Current Account

Question 9

The account holder or depositor of a checking
the account is normally provided at the end of the
month a bank statement showing all the deposits
made, checks paid by the bank and the
balance of the account.

Answer 9

Checking or Current Account

Question 10

are investment placements

Answer 10

Time deposit

Question 11

time deposits are evidenced by certificates of
time deposits (CTD

Answer 11

Time deposit

Question 12

the depositor agrees not to withdraw the funds
over the contracted period in exchange for fixed
interest rates that are higher than deposit rates.

Answer 12

Time deposit

Question 13

another type of savings account that is
popularly used nowadays wherein withdrawals
can be made through designated machines.

Answer 13

Automated Teller Machine

Question 14

7 Required information in the withdrawal slip
are:

Answer 14

1. Account Name
2. Account Number
3. Date of the withdrawal
4. Type of account
5. Currency
6. Amount to be withdrawn
7. Signature of the Depositor –

Question 15

6 usually required information in a
deposit slip are:

Answer 15

1. Account Name
2. Account Number
3. Date of Deposit
4. Type of Account
5. Currency
6. Amount in words and in figures –

Question 16

is a document that orders a bank to pay a specific amount of
money from a person’s account to the person in whose name the
_______ has been issued

Answer 16

check

Question 17

the person or entity who makes the
check

Answer 17

Drawer

Question 18

the recipient of the money

Answer 18

Payee

Question 19

the bank or other financial
the institution where the cheque can be
presented for payment

Answer 19

Drawee

Question 20

monthly fee charged by the
bank for its services (Ex. cost of printing checks
writing funds to other locations and other fees)

Answer 20

Bank service charge

Question 21

Banks also use a debit
memorandum when a deposited check from a
customer “bounces” because of insufficient funds.
Nowadays bank refer to this as

Answer 21

• NSF - (Not Sufficient Fund

Question 22

of cash
proceeds from notes
receivables.

Answer 22

Collection

Question 23

earned by
the deposit.

Answer 23

Interest income

Question 24

which a bank will not accept
and exchange for money or payment
because it was written more than a
certain number of months ago.
In the Philippines a check becomes stale
if it exceed 6 months from the date of
the check.

Answer 24

cheque

Question 25

are issued by persons, a single
depositor or holders of joint of
accounts.
-it may have two signatories if the
issuing account is joint account.

Answer 25

1. Personal Checks

Question 26

is issued by a corporation.
more secure than
a personal check

Answer 26

Corporate Check

Question 27

is issued by the bank in
behalf of the client. it is
the most secure among
the 3 kinds of checks.

Answer 27

3. Manager’s Check