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PF - Ch. 5 Banking Review

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

What is a check written by a bank on its own funds called?

a)

certified check

b)

cashier's check

c)

stop payment order

d)

money order

2.

Checks over ______ old may not be honored by a bank.

a)

4 weeks

b)

2 weeks

c)

6 months

d)

3 months

3.

A ______ endorsement results when the payee signs over a check to a third person.

a)

blank

b)

joint

c)

special

d)

restrictive

4.

A _______ endorsement results when the payee signs on the back "For Deposit Only" and signs his / her name.

a)

special

b)

blank

c)

joint

d)

restrictive

5.

A(n) _______ is a banking service in which a customer deposits money and writes checks to withdraw at his / her convenience.

a)

stop payment order

b)

checking account

c)

money order

d)

savings account

6.

A(n) _______ occurs when a depositor writes a check on an account that is insufficient to cover a check.

a)

debit

b)

overdraft

c)

stop payment

7.

The person to whom a check is made payable is called the ___.

a)

payor

b)

payee

c)

parent

d)

co-signer

8.

A(n) ____ is the record of checks written and deposits made in a checking account, kept by the depositor.

a)

log

b)

check

c)

reconciliation

d)

checkbook register

9.

A(n) ____ is sent by the bank regularly, listing checks and deposits processed by the bank, as well as charges and credits to an account. These can be found in you bank account online now also.

a)

list

b)

bank statement

c)

check

d)

checkbook reconciliation

10.

_____ cards provide immediate deductions from your checking account when you make a purchase.

a)

Debit

b)

Bridge

c)

Savings

d)

Credit

11.

A check drawn against the bank's own funds is a ______

a)

floating check

b)

bounced check

c)

certified check

d)

cashier's check

12.

The process of matching your checkbook register with the bank statement is called _____.

a)

reconciliation

b)

balancing

c)

double checking

13.

An endorsement signing a check over to a third person is a ______.

a)

joint endorsement

b)

restrictive endorsement

c)

blank endorsement

d)

special endorsement

14.

Financial institutions usually do not charge a fee for checking account services.

a)

True

b)

False

15.

To open an account, either checking or savings, you first must fill out and sign a signature authorization form.

a)

True

b)

False