Chapter 17 Test Review

All state and national banks are required to join the Federal Reserve System.

• True

• False

The most common way for a bank to be organized is as a mutual savings bank.

• True

• False

Not even the bank has the right to open your safe deposit box

• True

• False

If you lose your debit card, your liability for unauthorized use is only $50 if you notify your financial institution within two days of the loss.

• True

• False

A blank endorsement makes a check payable to anyone who has the check.

• True

• False

The paying of checks among different banks in different cities is called

• kiting

• clearing

• bouncing

• reserving

Mutual savings banks are organized mainly for

• business loans

• automobile loans

• savings and home loans

• check cashing

Except for some retirement accounts, the FDIC insures all accounts in the same name at each bank up to an amount of

• $2,500

• $2,500,000

• $250,000

• $25,000

Alexi is looking for a new bank. He is most concerned with finding a bank that offers 24-hour banking services. He is mostly concerned with

• restrictions

• convenience

• fees

• safety

Bonita writes many checks each month. Which type of checking account is probably the best choice for her?

• interest-earned checking account

• special checking account

• regular checking account

• activity checking account