Personal Finance -Chapter 9.1 Review

A written order to a bank to pay the amount stated to person/business named on it is

• demand deposit
• maker
• check
• money order

Another name for a checking account is

• check
• money order
• savings account
• demand deposit

The person cashing a check is called the

• maker
• payee
• substitute
• endorsee

The depositor is called the

• maker
• payee
• substitute
• endorsee

A check that has cleared the bank is a(n)

• check
• endorsed check
• payee
• canceled check

To convert a check into a debit transactions instead of processing, the merchant is doing a _____ transaction.

• money order
• canceled check
• electronic check conversion
• automated teller machine

If a bank processes a check but not enough funds are in the account, then you have a(n) _______.

• gone bankrupt
• invested in a money market account
• overdraft the account
• floated a check

If you write a check and hope to deposit money into the account before it clears the bank because you don't have enough funds in it, then you are _______.

• going bankrupt
• investing in a money market account
• overdrafting the account
• floating a check

The first thing you will do when you open a checking account is to complete a(n) __________.

• application
• signature authorization form
• provide a social security card
• show a valid driver's license

Another phrase for over-drafting a checking account is

• bouncing a check
• going bankrupt
• floating a check
• clearing the bank