WorksheetsPersonal Finance-Chapter 9-Checking
Total questions: 26
Worksheet time: 13mins
Name
Class
Date
1.
The payee is the person authorized to write checks on an account.
a)
True
b)
False
2.
The advantage of online and telephone banking is that information is up-to-date and can be checked any time.
a)
True
b)
False
3.
When you make a mistake in writing a check, you should tear the check up and throw it away.
a)
True
b)
False
4.
A check has "bounced" when no overdraft occurs and the check has been returned.
a)
True
b)
False
5.
When mailing a deposit to your bank, it is wise to use a restrictive endorsement.
a)
True
b)
False
6.
When filling in the written amount on a check, use the word "and" to separate dollar and cents amounts.
a)
True
b)
False
7.
to complete a deposit slip, list checks by their preprinted or handwritten check numbers.
a)
True
b)
False
8.
It is a good idea to use a pencil when writing checks so you can erase any mistakes.
a)
True
b)
False
9.
It is a good practice to postdate checks so they can be cashed on a future date.
a)
True
b)
False
10.
A certified check is a personal check that the bank guarantees or certifies to be good.
a)
True
b)
False
11.
A check is a negotiable instrument because it promises to pay a sum on a certain date.
a)
True
b)
False
12.
Money in a joint account is available to only the first person named on the account.
a)
True
b)
False
13.
Checking advertised as "free" must not have hidden charges or conditions.
a)
True
b)
False
14.
Banks usually charge fees for processing overdrafts.
a)
True
b)
False
15.
An interest-bearing account pays interest to the depositor when an average minimum monthly balance is maintained.
a)
True
b)
False
16.
Checks written are added to the balance in the checkbook register.
a)
True
b)
False
17.
The FDIC is a federal insurance corporation that insures deposits up to $100,000 per account holder
a)
True
b)
False
18.
A check written by the bank on its own funds is a(n) ____
a)
certified check
b)
cashier's check
c)
money order
d)
electronic funds transfer
19.
An endorsement in full is also called a ____
a)
blank endorsement
b)
special endorsement
c)
restrictive endorsement
d)
joint endorsement
20.
Which of the following is a disadvantage of an interest-bearing account?
a)
it earns no interest
b)
the minimum monthly balance requirement may be high
c)
a fee is charged for each check processed.
d)
it is available only to senior citizens
21.
Which of the following is not a type of checking account?
a)
savings account
b)
share account
c)
standard account
d)
interest-bearing account
22.
The depositor's record of checking account transactions is known as a
a)
canceled check
b)
checkbook register
c)
check
d)
stop payment
23.
A checking account with which you pay a fee for each check processed is a(n) ____
a)
share draft account
b)
standard account
c)
interest account
d)
special account
24.
Writing the words "For Deposit Only" on the back of a check before you name constitutes which of the following?
a)
blank endorsement
b)
special endorsement
c)
restrictive endorsement
d)
joint endorsement
25.
A financial institution that offers all types of services is called a ____
a)
private bank
b)
federal bank
c)
full-service bank
d)
state bank
26.
An automated teller machine can be used to do which of the following?
a)
request a stop payment on a check
b)
reconcile an account
c)
make a loan payment
d)
purchase a cashier's check
100 %
