Banking

When a person is reconciling a checking account and notices that the balance in the checkbook does not match the balance on the statement from the bank, which action is it appropriate for the person to take first?

• Adjust the balance in the checkbook so it is the same as the bank's balance.

• Determine that checks already written have cleared.

• Notify the bank in writing to adjust the statement.

• Deposit sufficient funds to adjust the balance in the checkbook to match the bank's balance.

A person is depositing $20 in cash and a check for $50. On the checking account deposit slip, the person should

• subtract any recent credit card purchases

• indicate what bank issued the check that is being deposited.

• indicate the amount of money that is currently in the checking account as well as in a savings account to cover the check.

• list the cash deposit separately from the check as well as the total of the deposit.

Ian's employer electronically places Ian's paycheck directly into his bank checking account every pay period. In what column on Ian's bank statement will he find these transactions?

• Withdrawals and debits

• Deposits and credits

• Balances and transfers

• Deposits and credits

On Monday, Joe's debit card was stolen and was used to make a $1000 purchase the same day. Tuesday he notices the charge and reports the stolen card to the bank. How much of the fraudulent purchase could he legally be liable for?

• $50 because he reported the missing card within 2 days

• $500 dollars because he reported it within 2 months of receiving the bank statement

• Banks are allowed to charge as much as they want

• All of it because the purchase happened before he reported the card missing

If a person makes a deposit of $10,000 or more into a bank account, the bank must notify the

• Federal Reserve Board.

• Federal Deposit Insurance Corporation

• Internal Revenue Service

• Federal Deposit Insurance Corporation

You have a checking account balance of $100 and you deposit a personal $200 check from your brother in your checking account. When will you be able to spend $150 on your debit card?

• 2 to 7 days later, depending on your bank's check clearance policy

• The same day as the $200 deposit

• On the day you make your next deposit

• After receiving a checking account statement at the end of the month

Consumer finance companies, which are often advertised on TV, are also known as:

• Small loan companies

• Banks

• Savings and loan associations

• Low interest lenders

Paty is selling her car through a newspaper advertisement. When she finds a buyer, she wants a form of payment which is guaranteed to be good. Which form of payment would be the LEAST reliable?

• Certified Check

• Cash

• Personal Check

• All of the above are "Good as Cash" instruments

Billy has $200,000 in a savings account at Suntrust Bank. He is worried that Suntrust may go out of business. What do you tell him?

• $100,000 of your money is insured by the FDIC, but you should move the rest to another bank

• Don't worry, all of your money is insured by the FDIC

• Withdraw all of your money as quickly as possible, and place it in a more reliable bank

• Use your savings to purchase Suntrust stock, which is insured by the FDIC

The NCUA insures accounts in

• Commercial banks

• Brokerage firms

• Online Bank

• Credit Union