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Check Processing Quiz

Total questions: 23

Worksheet time: 13mins

Name
Class
Date
1.

What is a savings account?

a)

A box under your bed

b)

A type of bank account that earns interest over time

c)

A place to store your toys

d)

A book where you write down your secrets

2.

What is the first step in reconciling your account?

a)

Add credits or deposits not on statement.

b)

Write ending balance from bank statement.

c)

List checks, withdrawals, and debits made but not shown on statement.

d)

Total outstanding checks/debit transactions.

3.

What does your bank do after receiving the check from the payee’s bank?

a)

Stamps the back of your check.

b)

Withdraws the money from your account.

c)

Cancels the check.

d)

Returns the check to the payee.

4.

What is the purpose of stamping the back of a check?

a)

To indicate it has been canceled.

b)

To indicate it has cleared.

c)

To indicate it has been lost.

d)

To indicate it has been returned.

5.

What is the first action taken by the payee in the check process?

a)

Returns the check to your bank.

b)

Stamps the back of the check.

c)

Cashes the check.

d)

Cancels the check.

6.

Why is floating a check considered risky?

a)

Checks can be easily lost

b)

Electronic systems process checks quickly

c)

It requires a lot of paperwork

d)

It is difficult to track

7.

How does a checking account help with financial management?

a)

Provides loans

b)

Built-in record-keeping system

c)

Offers investment advice

d)

Reduces taxes

8.

What is the amount shown for transaction code SC?

a)

600.00

b)

00.20

c)

926.68

d)

326.48

9.

What is the main risk of a blank endorsement?

a)

It can be cashed by anyone who finds it.

b)

It requires a bank manager's approval.

c)

It cannot be deposited.

d)

It is invalid after 30 days.

10.

What is a blank endorsement?

a)

A signature of the payee written exactly as his or her name appears on the front of the check.

b)

A signature of the payee with additional instructions.

c)

A signature of the payee with a date.

d)

A signature of the payee with a note.

11.

What is a restrictive endorsement?

a)

An endorsement that allows free use of a check

b)

An endorsement that restricts or limits the use of a check

c)

An endorsement that cancels a check

d)

An endorsement that transfers a check to another person

12.

What is a full-service bank?

a)

A bank that offers only savings accounts

b)

A bank that provides loans only

c)

A bank that offers every possible kind of service

d)

A bank that only issues credit cards

13.

Which of the following is a service offered by full-service banks?

a)

Safe deposit boxes

b)

Real estate advice

c)

Stock trading

d)

Insurance sales

14.

Which of the following is a financial service provided by banks?

a)

Grocery delivery

b)

Certified checks

c)

Movie tickets

d)

Travel bookings

15.

What is another name for a cashier’s check?

a)

Personal check

b)

Traveler’s check

c)

Bank draft

d)

Money order

16.

A signature or stamp on the back of a check transferring ownership.

a)

special endorsement

b)

endorsement

c)

restrictive endorsement

d)

blank endorsement

17.

What is a check that has not been returned for processing to the financial institution from where it originated?

a)

Outstanding

b)

Voided

c)

Cashed

d)

Authorized

18.
What should be written on line 2?
a)

The date

b)

The amount of the check

c)

Who the check is going to

d)

Your signature

19.

It's okay to erase and use whiteout to fix mistakes on a check.

a)

True

b)

False

20.

You can store valuables at a bank by purchasing the use of a

a)

safe deposit box

b)

post office box

c)

padlock box

d)

strong box

21.

A financial institution is an organization that provides services related to _____.

a)

clothing

b)

money

c)

property

d)

insurance

22.

A check with a ____________ endorsement may be used only for the specific purpose stated in the signature on the back of the check. Example: For Deposit Only John Doe

a)

blank

b)

special

c)

restrictive

d)

cashier

23.

A check with a blank endorsement can be cashed by anyone who has the check.

a)

False

b)

True