FABM2

What distinguishes a time deposit account from other type of accounts?

• It allows unlimited withdrawals.

• It comes with an ATM Card.

• It earns no interest.

• It requires funds to remain deposited for a fixed period in exchange for higher interest.

What type of account allows investors to gain from pooled funds in stocks and bonds?

• Checking Accounts  

• Time Deposit

• Savings Account

• UITF

It allows depositors to pay large sums using one sheet of paper stead of carrying currencies.

• ATM Cards

• Bank Checks

• Online Banking

• Passbook

What is required to deposit money in a bank account?

• ATM card

• Bank Statement

• Deposit Slip

• Withdrawal Slip

Which of the following accounts rarely earns interest due to the fast turnover of transactions?

• Checking Accounts  

• Time Deposit

• Savings Account

• UITF

In a withdrawal slip, whose signature is required to release the funds?

• The bank manager’s signature    

• The depositor’s signature

• The issuing bank’s signature

• The teller’s signature

Who is the person writing a check and ordering the bank to make payment?

• Banker

• Drawee

•  Drawer

• Payee

What happens if there is an erasure on a check?

• The bank automatically rejects the check.

• The bank process it without any issue.

• The drawer must sign the erasure for it to be valid.

• The payee must approve the correction.

What is the main reason companies prefer using checks instead of cash for payments?

• To avoid service charges

• To earn interest on transactions

• To increase transaction speed

• To minimize the risk of theft

What type of check must be deposited into the payee’s account and cannot be encashed over the counter?

• Certified check

• Crossed check

• Stale check

• Traveler’s check