Personal Finance: Chapter Five and One-Half Online Post-Test

Front

What is the ABA routing number?

Back

The ABA routing number is a unique identifier assigned to a financial institution in the United States, used to facilitate the transfer of funds between banks.

Front

What method of payment allows immediate access to funds in a checking account?

Back

A debit card allows immediate access to funds in a checking account.

Front

What does a debit transaction do to your bank account?

Back

A debit transaction removes funds from your account.

Front

What is the purpose of the memo line on a check?

Back

The memo line on a check is used to note the purpose of the payment or any additional information.

Front

What is a deposit in banking terms?

Back

A deposit is money added to a checking or savings account.

Front

What is the difference between a debit card and a credit card?

Back

A debit card withdraws money directly from your checking account, while a credit card allows you to borrow money up to a certain limit.

Front

What is a withdrawal?

Back

A withdrawal is the act of taking money out of a bank account.

Front

What is the payee line on a check?

Back

The payee line on a check indicates the person or entity to whom the check is payable.

Front

What is an endorsement in banking?

Back

An endorsement is a signature on the back of a check that allows the check to be cashed or deposited.

Front

What is a drawee in the context of a check?

Back

The drawee is the bank or financial institution that is responsible for paying the amount specified on a check.