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WorksheetsChapter 28 Quiz
Total questions: 25
Worksheet time: 13mins
"Clearing" referst a check that is being sent to another country.
True
False
A clearinghouse is a place where checks are paid for several banks in a geographic area.
True
False
The Federal Reserve System provides clearinghouse services.
True
False
A bank statement provides a summary of activities for a checking account, usually covering a one-month period.
True
False
Canceled checks represent amounts that have not yet cleared the banking system.
True
False
A bank reconciliation is prepared by a bank to determine which checks have cleared through the Financial Reserve System.
True
False
An outstanding check is one that has cleared the banking system and has been paid.
True
Flase
When preparing a bank reconciliation, an outstanding check must be subtracted from the bank-statement balance.
True
False
Interest is subtracted from your checkbook balance when preparing the bank reconciliation.
True
False
Selecting a financial institution for its convenience usually results in paying lower banking fees.
True
False
The process of returning and paying checks within the banking system is called _____________.
reconciliation
forgery
clearing
overdrawing
A clearinghouse has the main purpose of ____________.
setting interest rates charged for loans
determining the risk associated with different types of consumer laws
selling government bonds to investors
settling accounts among different banks for checks being presented for payment
The federal government agency involved in check clearing activities is the ___________.
Federal Reserve System
Federal Deposit Insurance Corporation
National Credit Union Administration
Comptroller of the Currency
A bank statement has the purpose of ____________.
insuring a savings account
reporting transactions for a checking account
reporting errors for electronic banking transactions
assisting a person to open a checking account
For an individual checking account, the total of checks that cleared over the past month would be reported on a ________.
bank statement
bank reconciliation
deposit slip
clearinghouse account report
Canceled checks are those that have __________.
not cleared the banking system
been issued illegally
cleared the banking system
stop-order payments issued for them
The document prepared to show agreement between the bank balance and the customer's checkbook balance is a ____________.
bank statement
bank reconciliation
canceled check report
check register
Which check is one that has not yet been presented for payment?
overdrawn
canceled
forged
outstanding
When preparing a bank reconciliation, outstanding checks are ______________.
subtracted from the bank balance
added to bank balance
added to the checkbook balance
subtracted from the checkbook balance
When doing a bank reconciliation, which of the following is added to the checkbook balance?
outstanding checks
canceled checks
interest earned
service fees
A place where checks are presented for payment from different banks is a ______________.
savings and loan
clearinghouse
check funds transfer station
ATM
A __________ is a monthly record of transactions form your financial institution.
reconciliation statement
profit and loss statement
canceled check statement
bank statement
Paid checks may be referred to as _________.
completed checks
canceled checks
liquidated checks
executed checks
A _______ is prepared to show agreement between the checkbook balance and the bank-statement balance.
profit and loss statement
bank reconciliation
canceled check statement
depost slip
A(n) ____________ is one that has not yet been presented to the bank for payment.
canceled check
outsanding check
overdrawn check
certified check
