Understanding Checks and Checking Accounts

What is a check used for?

• To withdraw money from an ATM

• To order products online

• To pay a specific amount of money to a person or company out of your checking account

• To deposit money into a savings account

Which of the following is a key benefit of using a checking account?

• To earn high-interest rates

• To save money, withdraw it, and pay bills

• To invest in stocks

• To collect reward points

What information is typically included in a monthly bank statement for a checking account?

• The total amount of cash in the bank

• The interest rate of the checking account

• The information that is included in a monthly bank statement

• The number of checks written in a month

According to the image, who is the person that wrote the check?

• The person or place the check is for

• The bank

• The person who received the check

• The person whose signature is on the check

What is the purpose of the check number as shown in the example check?

• To identify the bank account number

• To identify the specific check for record-keeping

• To show the amount of money in words

• To display the reason for the check

What is a bank statement?

• A document showing the bank's hours of operation.

• A summary of the account balance and transactions that occurred throughout the month.

• A notification for when a new bank branch opens.

• A record of the bank's annual profits.

What typically happens when an overdraft occurs?

• The bank sends a congratulatory message.

• The bank account is automatically closed.

• The bank charges a fee.

• The bank increases the account balance.

What is a deposit?

• A fee charged for maintaining an account.

• Money taken out of the account.

• Money put into the account.

• A type of loan from the bank.

Which of the following is NOT a way that money can be withdrawn from an account?

• Through a check.

• Using a debit card.

• By transferring money to another account.

• By depositing cash.

What is a transfer in banking terms?

• Moving money from one branch to another.

• Changing the name on the account.

• Moving money from one account to another.

• Withdrawing cash from an ATM.