Chapter 4 Money Matters Quiz

Which type of bank is commonly known as a full-service bank?

• Savings and Loan Association (S&L)

• Commercial Bank

• Mutual Savings Bank

• Internet Bank

Which of the following statement is true of Internet banks?

• Most of their services must be paid for with service charges.

• They have high operating expenses because they must maintain enough staff to be available 24 hours a day.

• Most internet banks also staff physical banks and branch offices

• Their low overhead costs allow them to pay higher interest rates on savings accounts

A __________ is a special payment that functions as cash when traveling.

• traveler's check

• certified check

• Money order

• cashier's check

Customer deposits in a federally insured bank are insured up to what amount?

• $100,000

• $500,000

• $250,000

• 90,000

Which of the following items does NOT appear on a regular check?

• balance of the account

• names of the payee

• amount of the check written in words

• checking account number

A(n) _____________ checking account is a combination savings and checking account.

• basic

• personal

• lifeline

• interest-bearing

Which of the following topics should be considered when shopping for a checking account?

• fees and charges

• interest rates

• restrictions and penalties

• all of the above

A(n) _________ check is written with a future date.

• invalid

• over drafted

• bounced

• postdated

You received your paycheck at the end of the day today, and you plan to go to the bank tomorrow. If you want to endorse the check immediately, which endorsement should you use?

• restrictive endorsement

• special endorsement

• blank endorsement

• descriptive endorsement

Nonprofit cooperative owned and operated for the benefit of its members.

• savings and loan association (S&L)

• dividends

• credit union

• checking account