Checking Accounts Vocabulary

What are the different types of checking accounts?

• savings accounts

• business checking accounts

• online checking accounts

• basic checking accounts, interest-bearing checking accounts, joint checking accounts, and student checking accounts

What is the process of writing a check?

• The process of writing a check involves filling in the date, payee's name, amount, and signing the check.

• The process of writing a check involves attaching a copy of the invoice.

• The process of writing a check involves providing a reason for the payment.

• The process of writing a check involves entering the recipient's bank account number.

How do you balance a checkbook?

• Compare your transactions with the bank's records and make necessary adjustments.

• Ask a friend to balance your checkbook for you.

• Ignore any discrepancies and hope they resolve themselves.

• Use a calculator to add up all your transactions.

What are overdraft fees?

• Charges imposed by a bank when a customer withdraws more money from their account than is available.

• Penalties for closing a bank account.

• Charges imposed by a bank for using an ATM.

• Fees charged for depositing money into a bank account.

What is direct deposit?

• Direct deposit is a method of transferring funds through a check.

• Direct deposit is a method of electronically transferring funds from one bank account to another.

• Direct deposit is a method of physically transferring cash from one bank account to another.

• Direct deposit is a method of transferring funds through a wire transfer.

Which type of checking account is best for frequent travelers?

• Certificate of deposit

• High-yield checking account

• Basic checking account

• Savings account

What information is typically included on a check?

• Name and address of the account holder, date, payee's name, amount, bank's name and routing number.

• Name and address of the account holder, date, payee's name, signature, bank's name and routing number.

• Account number, date, payee's name, amount, signature, bank's name and routing number.

• Name and address of the account holder, date, payee's name, amount, signature, bank's name and routing number

Why is it important to balance your checkbook regularly?

• To waste time and effort

• To make your bank account balance look bigger

• To ensure accuracy of records and detect errors or discrepancies.

• To confuse yourself with unnecessary calculations

What are some common reasons for incurring overdraft fees?

• Not keeping track of account balance

• Using a credit card instead of a debit card

• Depositing too much money into the account

• Spending more money than is available in the account, writing checks that exceed the account balance, making ATM withdrawals or debit card purchases that exceed the available funds, and having automatic bill payments or recurring charges that are processed when there are insufficient funds in the account.

How does direct deposit benefit both employers and employees?

• Direct deposit benefits both employers and employees by providing a convenient and secure way to receive and manage payments.

• Direct deposit benefits employers by streamlining payroll processes and employees by providing immediate access to funds.

• Direct deposit benefits employers by increasing employee satisfaction and employees by eliminating the need to visit a bank.

• Direct deposit benefits employers by reducing administrative costs and employees by ensuring timely payment.