Types of Checks Quiz

What is a personal check?

• A check used for international travel

• A check from a personal checking account

• A check issued by a business

• A check issued by a financial institution

Answer explanation

A personal check is a check from a personal checking account. It is not used for international travel or issued by a business or financial institution.

What is the main benefit of a cashier's check?

• Ability to use the check for peer-to-peer payments

• Guaranteed full payment to the payee

• Quick processing time for the check

• No fees associated with the check

Answer explanation

A cashier's check guarantees full payment to the payee, providing security and assurance.

You are selling your car. Why should you get a cashier's check or certified check instead of a personal check?

• Personal checks can be forged or not have enough money to cover the purchase and you will never get your money.

• Certified checks can only be issued up to $100.

Answer explanation

Certified checks are issued by a financial institution and used for larger expenses. They are different from cashier's checks.

What is an electronic check?

• A check that transfers funds online

• A check issued by a business

• A check guaranteed by the financial institution

• A check used for international travel

Answer explanation

An electronic check is a check that transfers funds online.

What are traveler's checks primarily used for?

• Peer-to-peer payments

• Paying rent and utility bills

• International travel expenses

• Purchasing a vehicle

Answer explanation

Traveler's checks are primarily used for international travel expenses.

What type of account is a business check tied to?

• Personal bank account

• Savings account

• Business bank account

Answer explanation

A business check is tied to a business bank account. This account is specifically designed for business transactions and expenses.

Which type of check may bounce if there are insufficient funds in the account?

• Cashier's check

• Certified check

• Personal check

• Electronic check

Answer explanation

A personal check may bounce if there are insufficient funds in the account. It is important to ensure that there are enough funds before writing a personal check.

What is the main advantage of using eChecks?

• Quick processing time for the check

• Ability to use the check for international travel

• No fees associated with the transaction

• Directly deducts money from the bank account

Answer explanation

The main advantage of using eChecks is that it directly deducts money from the bank account, ensuring quick and convenient transactions without any fees.

What can happen if a personal check is written without sufficient funds?

• The bank will cover the insufficient funds

• The check will be automatically voided

• The account holder will be charged an overdraft fee

• The payee may not be able to cash the check

Answer explanation

If a personal check is written without sufficient funds, the payee may not be able to cash the check.

What is the main disadvantage of using personal checks?

• They can be easily lost or stolen

• They have a high processing fee

• They cannot be used for international transactions

• They take a long time to process