True/False
Indicate whether the
sentence or statement is true or false.
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1.
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The payee is the person authorized to write checks on an account.
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2.
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It is important to use a pen, preferably with dark ink, when writing
checks.
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3.
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Checks written are subtracted from the balance in the checkbook register.
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4.
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If your name is written incorrectly as payee on a check, endorse the check by
first writing your name correctly.
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5.
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When mailing a deposit to your bank, it is wise to use a restrictive
endorsement.
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6.
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An interest-bearing account pays interest to the depositor when an average
minimum monthly balance is maintained.
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7.
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The FDIC is a federal insurance corporation that insures deposits up to $100,000
per account holder.
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8.
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It is important to reconcile your checkbook immediately when you receive the
bank statement.
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9.
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A debit card is the same as a credit card.
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10.
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To open a checking account, you first must fill out and sign a signature
card.
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Multiple Choice
Identify the
letter of the choice that best completes the statement or answers the question.
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11.
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A financial institution that offers all types of services is called a
a. | savings and loan association | c. | full-service
bank | b. | credit union | d. | commercial bank |
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12.
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A checking account with which you pay a fee for each check processed is
a(n)
a. | share draft account | c. | interest account | b. | standard account | d. | special account |
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13.
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A disadvantage of an interest-bearing account is that
a. | it earns no interest | c. | a fee is charged for each check processed | b. | the minimum monthly
balance requirements may be high | d. | it is available only to senior citizens |
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14.
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A check written by the bank on its own funds is a
a. | certified check | c. | money order | b. | cashier’s check | d. | electronic funds
transfer |
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15.
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Which of the following should not be kept in a safe-deposit box?
a. | gold coins | c. | cash | b. | stock certificates | d. | jewelry and
valuables |
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16.
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Writing the words “For Deposit Only” on the back of a check before
your name constitutes a
a. | blank endorsement | c. | restrictive endorsement | b. | special
endorsement | d. | joint
endorsement |
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17.
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An endorsement in full is also called a
a. | blank endorsement | c. | restrictive endorsement | b. | special
endorsement | d. | joint
endorsement |
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18.
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The process of matching your checkbook balance with the bank statement balance
is known as
a. | endorsement | c. | canceling | b. | reconciliation | d. | processing |
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19.
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Checks over ____ old may not be honored by a bank.
a. | two weeks | c. | three months | b. | four weeks | d. | six months |
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20.
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When payment on a check is prevented by the bank before it can be made to the
payee, it is a(n)
a. | overdraft | c. | cashier’s check | b. | stop payment
order | d. | service
fee |
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Matching
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a. | payee | h. | canceled check | b. | endorse | i. | reconciliation | c. | stop
payment | j. | joint
account | d. | checking account | k. | floating a check | e. | postdated check | l. | checkbook register | f. | maker,
drawer | m. | currency | g. | overdraft |
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21.
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A banking service wherein the customer deposits funds in an account and writes
checks to withdraw money
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22.
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A check that cannot be covered by the funds in your account
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23.
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Writing a check on insufficient funds and trying to make a deposit before the
check is cashed
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24.
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Another term for a survivorship account
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25.
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A check written with a future date
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26.
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The person to whom a check is made payable.
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27.
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To sign your name on the back of a check
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28.
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The person authorized to write checks on an account.
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29.
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Dollar bills being deposited to an account.
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30.
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The depositor’s record of checking account transactions.
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