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Chapter 26: Opening a Checking Account

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

Checks are usually not considered to be a safe method for making payments.

a)

True

b)

False

2.

A service charge can be a fee a bank charges for handling a checking account.

a)

True

b)

False

3.

A regular checking account commonly earns interest.

a)

True

b)

False

4.

A sharedraft is a check issued by a member of a credit union.

a)

True

b)

False

5.

A signature card must be completed for each deposit.

a)

True

b)

False

6.

A joint account requires that both account owners sign checks.

a)

True

b)

False

7.

A deposit slip lists currency, coins, and checks to be added to a checking account.

a)

True

b)

False

8.

An endorsement refers to the time between the receipt of a deposit and the availability of the funds.

a)

True

b)

False

9.

A blank endorsement makes checks payable to anyone who has the check.

a)

True

b)

False

10.

A check register is used to maintain a record of deposits and checks.

a)

True

b)

False

11.

A common advantage of a checking account is that

a)

every checking account earns interest

b)

lost checks are insured by the federal government

c)

banks automatically tells you when payments are due

d)

cancelled checks can serve as proof of payment.

12.

The fee a bank charges for handling a checking account is a

a)

credit transaction

b)

deposit

c)

service charge

d)

minimum balance

13.

Which checking account pays the depositor earnings?

a)

an EFT account

b)

an interest-earning account

c)

a regular account

d)

a joint account

14.

The purpose of a signature card is to

a)

serve as identification when cashing a check.

b)

allow a bank customer to obtain cash by just.

c)

allow customers to make deposits quickly.

d)

serve as the bank's official record of a depositor's signature.

15.

Which account is an account opened by two or more people together?

a)

an EFT account

b)

a joint account

c)

a business account

d)

an interest-earning account

16.

When adding money to a checking account, a bank customer prepares a

a)

bank statement.

b)

signature card.

c)

deposit slip.

d)

sharedraft.

17.

The purpose of an endorsement is to

a)

open a checking account with direct deposit.

b)

provide written evidence that payment has been received.

c)

convert U.S. currency to the currency of another country.

d)

instruct the bank to automatically put an amount each month in your savings account.

18.

Angelica recently received a check for $50. She needs to repay her father that same amount. To transfer the check to her father, angelica would use which endorsement?

a)

special

b)

blank

c)

restrictive

d)

continuous

19.

A restrictive endorsement commonly uses which of the following words?

a)

"Pay to the order of."

b)

"For deposit only."

c)

"Void if not cashed within 60 days."

d)

No words are necessary.

20.

Which of the following items is NOT used when recording a deposit?

a)

a check stub

b)

a check register

c)

a service charge

d)

a deposit slip

21.

An interest rate tied to the current cost of money in the marketplace is called the _________________.

a)

money market rate

b)

prime rate

c)

borrowing rate

d)

marketplace rate

22.

A ____________ account allows each owner to sign checks.

a)

partnered

b)

interest-earning

c)

joint

d)

savings

23.

The form on which you list all currency, coins, or checks to be added to a checking account is a ____________________

a)

signature card

b)

sharedraft slip

c)

check register

d)

deposit slip

24.

Use a _______________ endorsement when transferring a check from one person to another person.

a)

special

b)

blank

c)

restrictive

d)

joint

25.

A check ____________ is a form attached to each check and is used for recording deposits and checks written

a)

register

b)

endorsement

c)

stub

d)

sharedraft