Check Processing Quiz

What is a savings account?

• A box under your bed

• A type of bank account that earns interest over time

• A place to store your toys

• A book where you write down your secrets

What is the first step in reconciling your account?

• Add credits or deposits not on statement.

• Write ending balance from bank statement.

• List checks, withdrawals, and debits made but not shown on statement.

• Total outstanding checks/debit transactions.

What does your bank do after receiving the check from the payee’s bank?

• Stamps the back of your check.

• Withdraws the money from your account.

• Cancels the check.

• Returns the check to the payee.

What is the purpose of stamping the back of a check?

• To indicate it has been canceled.

• To indicate it has cleared.

• To indicate it has been lost.

• To indicate it has been returned.

What is the first action taken by the payee in the check process?

• Returns the check to your bank.

• Stamps the back of the check.

• Cashes the check.

• Cancels the check.

Why is floating a check considered risky?

• Checks can be easily lost

• Electronic systems process checks quickly

• It requires a lot of paperwork

• It is difficult to track

How does a checking account help with financial management?

• Provides loans

• Built-in record-keeping system

• Offers investment advice

• Reduces taxes

What is the amount shown for transaction code SC?

• 600.00

• 00.20

• 926.68

• 326.48

What is the main risk of a blank endorsement?

• It can be cashed by anyone who finds it.

• It requires a bank manager's approval.

• It cannot be deposited.

• It is invalid after 30 days.

What is a blank endorsement?

• A signature of the payee written exactly as his or her name appears on the front of the check.

• A signature of the payee with additional instructions.

• A signature of the payee with a date.

• A signature of the payee with a note.