Unit 2 - Test Review

What is money placed in a checking account called?

• Investment deposit

• Checking deposit

• Special Deposit

• Demand Deposit

_______ endorsement includes the words "FOR DEPOSIT ONLY".

• Full

• Restrictive

• Blank

• Special

______ is a request that a bank or other financial institution NOT cash a particular check.

• Point-of-sale transaction

• Certificate of Deposit

• Stop-payment Order

• Rate of return

To earn high interest rates on a certificate of deposit, you must accept all the following limitations EXCEPT:

• leaving money in for the term of the deposit

• paying a penalty when money is withdrawn early

• completing a monthly bank reconciliation

• depositing a minimum amount

A _____ accounts for the difference between a bank statement and a checkbook balance.

• Certificate of Deposit

• Endorsement

• Bank Reconciliation

• Money Market Account

The Federal Deposit Insurance Corporation (FDIC) insures depositors against losing their money in case of a ______.

• lost debit card

• stolen paycheck

• bank failure

• death in family

In which kind of savings plan does the interest rate vary from month to month?

• regular savings

• money market

• certificate of deposit

• U.S. Savings Bonds

According to the Truth in Savings law, financial institutions have to inform you of all the following EXCEPT _____. 

• number of deposits held in the bank

• interest rate

• annual percentage yield

• terms and conditions of the savings plan

Credit cards allow you to:

• spend only the amount in your account

• borrow money for a short term

• protect your checks from thieves

• transfer money between accounts on-line.

When writing a check, include all of the following EXCEPT _____.   

• the current date

• the name of the payee

• your signature on the front

• an endorsement on the bank