Standard 4: Managing a Bank Account

A check is defined as

• a written document showing the balance in your checking account.

• an automated order transferring money from your savings to your checking account.

• a written document that allows you to buy goods and services today and pay for them in the future.

• a written document ordering a financial institution to transfer money from your account to someone else.

When you receive your monthly bank statement, it is recommended that you

• file it with your other personal records.

• use it to reconcile your checking account

• use it to record all of your transactions for the past month.

• review it carefully, then shred it before throwing it in the trash.

Writing a check for insufficient funds (commonly called a “hot check”

• can be easily avoided if you do not use an ATM

• is impossible as long as you have checks in your checkbook.

• can result in expensive fees, fines and even jail time, if convicted.

• is really no big deal as long as you pay the fees and cover the check amount.

The first set of numbers at the bottom of your check are called

• check routing numbers.

• . checking account numbers.

• deposit numbers.

• banking numbers.

In which format would you write the amount of the check in the small space that starts with the dollar sign?

• 100.00

• One hundred dollars and no/100

• 100 dollars and 00 cents

• One hundred dollars and no cents

A debit card

• is the same as a credit card.

• charges interest on all transactions.

• is the same as a check, only in a plastic form.

• is similar to a check, but delays payments like a credit card.

Deposits represent

• money that is subtracted from your checking account.

• money that is available in your checking account.

• money that is added to your checking account.

• purchases made with a debit card.

Which of the following statements is TRUE?

• As long as you have signed a check, it is a legal document and will be accepted as payment.

• A check is not a legal document. It is only an agreement between you and the bank to pay someone.

• It does not matter what date you write on the date line of check because it is a legal document, regardless of the date.

• A check is a legal document and therefore, must be filled in correctly; otherwise, banks or other businesses may refuse to accept it as payment.

The PRIMARY purpose of a check or debit card is to

• encourage people to spend more money.

• replace cash so the government has a record of your activities

• replace cash so the government does not have to pay to print bills or make coins.

• . make it easier for people to buy goods and services, pay bills, and make other financial transactions.

When using a debit card, it is important to remember

• that you are being charged a fee for every transaction.

• to write down all transactions and add them to your account balance.

• to write down all transactions and subtract them from your account balance.

• you have one to two weeks before the purchase will be deducted from your account balance.