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Checking and Banking

Total questions: 20

Worksheet time: 14mins

Name
Class
Date
1.

A demand deposit account on which checks are drawn.

a)

A. savings account

b)

B. checking account

c)

C. CD

d)

D. money market account

e)

Both C and D

2.

Writing a check for a major purchase is safer than than carrying a large amount of cash to the store.

a)

True

b)

False

3.

An agency of the federal government that insures bank deposits up to $250,000 is the

a)

FAA

b)

FDIC

c)

FIDC

d)

Fed

4.

Writing a check for a major purchase

a)

A. is safer than paying for it with cash

b)

B. will give you an additional paper trail of the transaction

c)

C. would be similar to paying for it with a credit card

d)

Both A and B

e)

All of the above

5.

A document that provides an official signature that the bank can compare the one on a check is the

a)

check register

b)

deposit slip

c)

signature card

d)

bank draft

6.

A tool used to track checking account transactions is a

a)

deposit slip

b)

debit card

c)

checkbook register

d)

certified check

7.

Money added to a checking account is called a

a)

withdrawal

b)

deposit

c)

endorsement

d)

drawee

8.

Which of the following is the best way to keep track of your check balance?

a)

A. reconciling your bank statement each month

b)

B. solely relying on checking your balance online

c)

C. checking your balance by calling the bank daily

d)

D. checking your balance at an ATM when you make a deposit

e)

Both C and D

9.

The bank from which funds are drawn is called the

a)

payee

b)

drawee

c)

drawer

d)

payer

10.

The person or company you are directing the Bank to pay with your check is the

a)

payee

b)

drawee

c)

payer

d)

drawer

11.

A check written with a date that will occur in the future is a

a)

A. pre-dated check

b)

B. post-dated check

c)

C. voided check

d)

D. cashier's check

e)

All of the above

12.

This is used to withdraw or deduct money from your checking account.

a)

A. credit card

b)

B. debit card

c)

C. ATM card

d)

Both B and C

e)

Both A and B

13.

Similar to a debit card, but its use is limited to withdrawals & deposits at Automated Teller Machines

a)

Credit card

b)

PIN card

c)

POS card

d)

ATM card

14.

The act of signing another person's name on a check is

a)

A. check fraud

b)

B. forgery

c)

C. tampering

d)

D. legal if the person is authorized to do so

e)

Both A and C

15.

When used this restricts or limits the use of a check per the instructions you write on its back :

a)

blank endorsement

b)

special endorsement

c)

restrictive endorsement

d)

full endorsement

16.

The drawer issues a check to the payee, who then endorses it and gives it to someone else to cash.

a)

EFT

b)

restrictive check

c)

third-party check

d)

fully endorsed check

17.

Using a computer based system to transfer money from the drawer's account to the payee's account.

a)

Payroll deduction

b)

ATM

c)

Data warehousing

d)

Electronic funds transfer

18.

The process of comparing and adjusting one's checkbook balance to agree with the bank's is

a)

Checkbook registering

b)

Bank reconciliation

c)

Endorsing

d)

Withdrawing

19.

Deposits you made that have yet to appear on your bank statement are called

a)

debit charges

b)

deposits in transit

c)

outstanding withdrawals

d)

bank charges

20.

A canceled check is a

a)

request that the bank not honor a specific check

b)

personal check the bank guarantees to be good

c)

check written by the bank on its own funds

d)

check that cleared your account.