WorksheetsMoney Matters - Chapter 5: The Banking System
Total questions: 13
Worksheet time: 7mins
You only need to do bank reconciliation once a year.
True
False
Which of the following is the most liquid?
your U.S. Savings Bond
money you have invested in an annuity
the money in your checking or savings account
Overdraft protection for checking accounts is automatically provided at no cost by most U.S. banks.
True
False
U.S. Savings Bonds are considered to be a safe form of saving because...
the U.S. government pays a guaranteed minimum rate of interest on them.
they are provided free to people without jobs so they can afford healthcare.
the government saves them in a safe deposit box then mails them to your spouse and children when you die so that your family can afford to pay for your funeral.
When reconciling a bank statement, the amount of outstanding checks is...
added to the bank statement balance
deducted from the bank statement balance
deducted from the check register balance
The words "For deposit only" are included in which type of endorsement?
restrictive
blank
special
Paying bills online is fast and convenient, but much riskier than sending checks through the mail.
True
False
On-line only banks are subject to the same laws and regulations as traditional banks, but online-only bank accounts are not insured by the FDIC.
True
False
What is computed on principal once during a certain time period and can be calculated using the following formula:
I= Principal (P) X Rate (R) X Time (T)?
An annuity
simple interest
compound interest
an individual retirement account (IRA)
Checks written that have not yet been processed by the bank are called what?
outstanding checks
deposits in transit
bounced checks
Non Sufficient Funds (NSF)
Debit cards do not have all the same protections provided with credit cards. Credit cards allow you to reverse or dispute charges and you are not liable for fraudulent charges made by someone else - but if your debit card is lost or stolen, money can be taken from your account.
True
False
An "ATM" card allows you to do what?
withdraw cash, deposit cash or checks, and check your account balance at Automated Teller Machines.
make purchases at stores like you would with a credit card through Automated Trade and Management
use it like a passport when you travel because of the Annual Travel Membership
all of these are correct
With ______ ________, money is deducted from your account electronically and transferred to another party on a regular basis. This is very helpful for paying monthly bills.
automatic withdrawal
direct deposit
ATM cards
debit cards
