5.1 Checking Accounts: The Basics

which of the following is NOT required for a check to be vaild?

• Signature of the account holder

• Name of Payee

• Account Number

• Address of Payee

Physical checks require a number of elements to allow someone to cash a check issued by one bank at another bank. Which of the following is NOT part of the payment trail for transferred funds?

• Bank routing number

• Account number

• Date of check

• Social Security Number

Xavier is purchasing a new car. The car dealership needs a $3,000 down payment before it will process a load for the remaining balance. Xavier does not have a checking account, but he does have $3,000 in a savings account. He does not want to risk having the money stolen or lost on the way from the bank to the car dealership. What option could Xavier use to down payment that is both acceptable to the dealership while providing protection for Xavier?

• Unfortunately, he does not have many choices other than to use cash

• He could use a certified check from his bank

• He could purchase a cashier's check made payable to "Cash"

• Bother using a certified check from his bank or purchasing a cashier's check made payable to "Cash" are acceptable

Kaylee received a check from her grandmother. She wants to make sure that the check gets deposited into her account, so she endorses the check as follows: For Deposit Only, Account 7864389876, Kaylee Jones. This is an example of what type of endorsement?

• Bank endoresment

• Special endoresment

• Restricted endorsement

• Certified endorsement

When shopping for a check account, it is important to compare banks and credit unions based on fees charged. All of the following are reasonable fees, EXCEPT:

• $5 monthly account fee for a nonstudent account holder

• $5 fee when account balance drops below $100 in a given month

• $3-per-transaction fee for in-network ATMs

• $0 fee for use of a debit card

Banks close about five million checking accounts every year. It can be difficult for someone with a closed account to reestablish an account at a later time. All of the following factors are likely to prompt a bank or credit union to close a checking account, EXCEPT:

• Writing bad checks

• being unable to pay an overdraft fee

• consistently mismanaging the account

• making several deposits and withdrawals every month

Jorge opened a no-cost checking account at a local bank last month. He. was surprised when he was charged several service fees. Under federal law, which of the following service fees is allowed in a no-cost checking account?

• Withdrawal fee

• Service charge for excessive transactions

• Inactive account fee

• Money transfer fee

This account allows you to deposit money at a bank for safekeeping.

• Saving Account
• Checking Account
• Bill Account
• Casino Account

This is the cost of using some other person's or bank's money.

• Interest
• Bill
• Principal
• Credit

This allows you to withdraw cash from your account or make payments electronically.

• Debit Card
• Loan Account
• Signature Card
• Payday card