WorksheetsW!SE - Banking Review
Total questions: 22
Worksheet time: 11mins
If a person makes a deposit of $10,000 or more into a bank account, the bank must notify the:
US Treasury Department.
Federal Deposit Insurance Corporation. (FDIC).
State Banking Commission.
Federal Reserve Board.
The best reason for depositing money in a bank or credit union savings account instead of keeping your money "under the mattress" is that:
Money deposited in savings accounts are F.D.I.C. insured
Most savings accounts earn a guaranteed rate of interest
Most savings accounts come with a free credit card
Money in a savings account can be accessed any time during the day or night
A person is depositing $20 in cash and a check for $50. On the checking account deposit slip, the person should
include the reason that both cash and a check are being deposited.
indicate what bank issued the check that is being deposited.
indicate the amount of money that is currently in the checking account as well as in a savings account to cover the check.
list the cash deposit separately from the check as well as the total of the deposit.
The National Credit Union Administration (NCUA) insures accounts in:
Credit unions
Commercial banks
Brokerage firms
Savings banks
A bank Certificate of Deposit is a:
Savings instrument that requires a deposit for a period of time during which the saver can withdraw money from the plan at any time without a penalty
Savings instrument that requires a deposit for a period of time during which there is a penalty for withdrawals
Cash deposit in a savings account that earns interest
Certificate for deposits that are issued for half the face value
When a person is reconciling a checking account and notices that the balance in the checkbook does not match the balance on the statement from the bank, which action is it appropriate for the person to take first?
Determine that checks already written have cleared.
Deposit sufficient funds to adjust the balance in the checkbook to match the bank's balance.
Adjust the balance in the checkbook so it is the same as the bank's balance.
Notify the bank in writing to adjust the statement.
Employees prefer direct deposits because:
There is a small fee for the service
The danger of losing a paycheck is slightly reduced
The money is generally deposited in their checking account sooner than it would be if they had to deposit it in person
Direct deposits earn a higher rate of interest
You have a checking account balance of $100 and you deposit a personal $200 check from your brother in your checking account. When will you be able to withdraw $150 in cash?
The same day as the $200 deposit
3 to 7 days later, depending on your bank's check clearance policy
After receiving a checking account statement at the end of the month
On the day you make your next deposit
The best suggestion you gave a friend who is writing a check for the first time is:
Date the check because it is usually proof of payment
Use pencil to permit changes
Make the check payable to cash
Use the checkbook stub or register to keep a record of the date you write the check
Financial services and products generally offered by banks and credit unions include:
Real estate listings
Savings and loans
Legal services
Business plans
Which of the following accounts is the most liquid?
A corporate bond
A certificate of deposit
Real estate holding
A money market account
Which documents should be stored in a safe-deposit box?
Checkbook statements.
Copies of current and past budgets.
Current paycheck stubs.
Mortgage loan papers.
A teenage boy has opened a checking account. He is surprised to find that though he is getting a written bank statement each month he is not getting his cancelled checks returned. The teenager should be aware that the reason cancelled checks are NOT returned is to
protect him from providing opportunities for forgery.
insure that he does not receive important materials he is likely to lose.
lessen the bank's need to maintain records of check transactions.
save the bank money associated with returning copies of these checks.
Troy has $50 a month transferred electronically from his checking account to his savings account. This is an example of:
An installment payment
A savings plan
An ATM transaction
A debit card transaction
Which financial product may pay a dividend?
Savings account
Money market account
Certificate of deposit
Common stock
Money orders are:
Distributed by the Treasury Department
Available for no fee at banks and retail stores
A purchased certificate to pay a specified amount to a specific payee
A certified check used to pay a specified amount to a specific payee
Patty is selling her car through a newspaper advertisement. When she finds a buyer, she wants a form of payment which is guaranteed to be good. Which form of payment should she avoid?
Cash
Certified check
Cashiers check
A check
Which financial product can you buy for $25, is safe, and will be worth $50 at a future date?
Series EE savings bond
Certificate of deposit
50 shares of ABC Co. stock
ABC Co. bond
The financial institution where Ms. Sanchez has her checking account will continue to pay out money for the checks she writes as long as:
She uses checks from her checkbook
The financial institution has sufficient funds
There is enough money in Ms. Sanchez's account to cover the amount of the checks
She maintains a good record of deposits and handles her account responsibly
A blank endorsement on a check:
Has no effect on the check
Cancels the check
Creates a check that can be cashed by anyone
Restricts the use of the check
The term used to describe the ease and speed with which you can convert savings or an investment to cash is:
Convertibility
Principal
Liquidity
Rate of return
What action should a person take who must make a tuition payment at the end of August each year?
Decide how much money will be needed and then place 1/12th of that amount in a separate account each month.
Divide the total amount of money that will be needed into 12 equal parts and invest that amount in stocks.
Obtain a short- term collateralized loan for the needed amount of money.
Plan to open a new credit card account that will be used to charge the needed amount of money.
