Unit 2 Test

Period

• 1
• 3
• 4

Last Name

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The person to whom a check is payable is called the:

• a. demander.
• b. depositor.
• c. payee.
• d. maker.

When a check is returned to the payee’s bank due to insufficient funds, the check is said to have:

• a. bounced.
• b. been canceled.
• c. floated.
• d. been postdated.

When you open a checking account, most banks will require you to have an initial deposit of at least:

• a. $500.
• b. $1,000.
• c. $250.
• d. $50.

Which part of a check provides a place for you to write the purpose of the check?

• a. the routing number
• b. the memo line
• c. the payee line
• d. the signature line

Darren writes a check to the phone company for $45.60. He should record this amount in his checkbook register in the:

• a. Deposit/Credit column.
• b. Payment/Debit column.
• c. Balance column.
• d. Fee column.

A check is written to Taylor Thomas. On the back of the check, Taylor writes “Pay to the order of Rose Dryer,” then signs his name. What kind of endorsement is this?

• a. blank endorsement
• b. special endorsement
• c. restrictive endorsement
• d. partial endorsement

An interest-bearing checking account that pays a higher rate of interest than a usual account, but typically has more restrictions, is called a

• a. share account.
• b. standard account.
• c. money market account.
• d. special account.

A check written by a bank on its own funds is called a

• a. cashier’s check.
• b. traveler’s check.
• c. certified check.
• d. money order.