Checking Accounts Vocabulary

What is the primary purpose of a checking account?

• To save money for long-term goals

• To earn interest on deposits

• To manage daily expenses and payments

• To invest in stocks

Which of the following is a common feature of checking accounts?

• High interest rates

• Limited withdrawals

• Overdraft protection

• Fixed deposit terms

What does the term 'overdraft' mean in the context of checking accounts?

• A fee charged for account maintenance

• A withdrawal that exceeds the account balance

• A deposit made into the account

• A transfer between two accounts

Which of the following is NOT typically associated with checking accounts?

• Debit card access

• Check writing

• High interest earnings

• Direct deposit

What is a 'bounced check'?

• A check that is returned due to insufficient funds

• A check that is deposited into the wrong account

• A check that is cashed at a bank

• A check that is written for a future date

What is the function of a debit card linked to a checking account?

• To provide a line of credit

• To allow cash withdrawals and purchases

• To earn rewards points

• To invest in mutual funds

Which term describes the process of balancing a checkbook?

• Reconciling

• Endorsing

• Depositing

• Withdrawing

What is the significance of a routing number on a check?

• Identifies the check writer

• Indicates the check amount

• Specifies the bank location

• Shows the check date

What does 'direct deposit' mean in relation to checking accounts?

• Automatically transferring funds to savings

• Receiving payments directly into the account

• Writing checks without fees

• Paying bills online

Which of the following is a benefit of online banking for checking accounts?

• Higher interest rates

• 24/7 account access

• Limited transaction history

• Increased check writing fees