FL: Chapter 4 Review

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

• savings and loan association (S & L)

• Internet bank

• Mutual savings bank

• commercial bank

Which following statement is true of Internet banks?

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

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

• Most Internet banks also staff physical banks and branch offices.

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

A _____ is a special payment that functions as cash.

• cashier's check

• certified check

• money order

• traveler's check

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

• $100,000

• $200,000

• $250,000

• $500,000

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

• balance of the account

• amount of check written in words

• name of the payee

• checking account number

What banking service ensures a financial institution will honor a check even if it exceeds the account balance?

• stop-payment order

• overdraft protection

• money order

• check certification

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

• basic

• interest-bearing

• lifeline

• personal

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

• restrictions and penalties

• fees and charges

• interest rates

• All of the above.

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

• postdated

• over drafted

• bounced

• invalid

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?

• blank endorsement

• restrictive endorsement

• descriptive endorsement

• special endorsement