5.1 Checking Accounts

Fill in the Blanks

A checking account is also known as a

deposit, because the money deposited can be withdrawn at any time.

Open Ended

Why might someone choose to open a checking account instead of keeping their money in cash?

Multiple Choice

Which of the following is NOT a step in the check cashing process?

• The payee cashes your check

• The bank that the payee uses returns the check to the maker’s bank

• Your bank marks your check indicating it has cleared your account

• The payee’s bank deposits money into your account

Open Ended

Explain why having a checking account is considered safer than using cash.

Multiple Select

Which of the following statements about overdrafts is/are correct?

• A check written for more money than your account contains is an overdraft.

• If a bank doesn’t honor a check due to insufficient funds, it is stamped NSF.

• Bouncing a check can result in a fee of $25 or more.

• Overdrafts never result in any fees.

Fill in the Blanks

Intentionally writing bad checks can result in penalties and hurt your

record.

Multiple Choice

What does the ABA number on a check identify?

• The amount of money on the check

• The location and district of the bank

• The name of the payee

• The date the check was written

Multiple Choice

Which line on a check is used to indicate who the check is payable to?

• Payee Line

• Memo Line

• Signature Line

• Date Line

Multiple Select

Which of the following are important tips for writing checks?

• Use a pen with dark ink

• Write legibly

• Sign your name as it appears preprinted

• Leave extra spaces between numbers

Open Ended

Compare the advantages of paying bills online versus mailing a check. What are some reasons a person might choose one method over the other?

Multiple Choice

What is the first step to pay bills online through your bank?

• Create a login with your bank's website

• Enter your payment amount

• Select a payee

• Authorize automatic deductions

Fill in the Blanks

A booklet used to record checking account transactions is called a

.

Open Ended

Describe the process of reconciling a checkbook register with a bank statement. Why is this process important?

Multiple Choice

What is the main purpose of reconciling your account?

• To match your checkbook register with the bank statement to find inaccuracies

• To deposit more money into your account

• To close your bank account

• To apply for a new checkbook

Multiple Choice

Which of the following statements about endorsing checks is correct?

• A check cannot be cashed until it is endorsed.

• A check can be cashed without endorsement.

• Only the bank can endorse a check.

• Endorsement is not required for mobile deposits.

Fill in the Blanks

Fill in the blank: A blank endorsement requires the payee to sign their name exactly as it appears on the

of the check.

Multiple Choice

Which of the following is a feature of a restrictive endorsement?

• It restricts the use of a check to deposit only into a specified account.

• It allows anyone to cash the check.

• It transfers the right to cash the check to someone else.

• It requires two signatures.

Multiple Choice

Which of the following is a typical requirement for a free checking account?

• Maintaining a minimum balance

• Paying a monthly service fee

• Earning high interest

• Writing unlimited checks

Multiple Select

Which of the following statements are true about joint checking accounts?

• They can be opened by two or more people.

• They are also called survivorship accounts.

• Only one person can access the funds.

• If one account holder dies, the survivor becomes the sole owner.

Fill in the Blanks

A special account is ideal for customers with a

amount of activity in their accounts each month.

Multiple Choice

What is one major advantage of a money market account compared to other checking accounts?

• Higher interest rates

• No minimum balance required

• Unlimited check writing

• No service fees

Multiple Choice

Which type of account is typically associated with credit unions and may have low or no service fees?

• Share account

• Joint account

• Money market account

• Special account

Open Ended

After learning about checking accounts, what is one question you still have or something you would like to know more about?

Multiple Choice

What is a checking account also known as, and why?

• A savings account, because it earns interest

• A demand deposit, because money can be withdrawn at any time

• A fixed deposit, because money is locked for a period

• A credit account, because it allows borrowing