Checking Accounts Quiz Terms

study for 12/9/22

A type of bank account from which funds may be withdrawn at any time

demand deposit or checking account (think debit cards)

A booklet used to record checking account transactions

checkbook register

An endorsement that transfers the right to cash a check to someone else

special endorsement

Writing a check and hoping to cover it with a deposit before it clears

floating a check

A check that has cleared your account

canceled check

A written order to a bank to pay the amount stated to the person or business named on it

check

A check written for more money than your account contains

overdraft

An endorsement that limits the use of a check

restrictive endorsement

The process of matching your checkbook register with the bank statement

bank reconciliation

Can you write a check to get money from your savings account?

NO

The act of signing the back of the check (signature of the payee)

Endorsement

(for when you first open your bank account) this provides an official signature that the bank can compare to the signature you write on your checks

Signature Form

something most banks require when opening a checking account

initial deposit

Identify the parts of a check.

1) Name and address of maker
2) Date
3) Check Number
4) ABA Number
5) Payee
6) Numeric Account (money)
7) Written Amount
8) -
9) Memo Line
10/11/12) Accounting and Routing Numbers
13) Signature

A check generally cannot be cashed until it is what?

Endorsed

How do you endorse a check?

The payee needs to sign the top of the back of the check

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

Blank endorsement

restricts or limits the use of a check
- Only take out from the specific bank and specific acc # (you can only deposit this check)
- Safer than the blank endorsement

Restrictive Endorsement

A bank that offers every possible kind of service from savings and checking account to credit cards, safe deposit boxes, loans, and ATMs

Full Service Bank

What is FDIC?

Federal Deposit Insurance Corporation
- which protects the deposits of customers against
loss up to $250,000 per account
- only protects savings and checking accounts

What kind of card do you need for an ATM transaction?

Debit Card

- your checks will be covered
(paid) even if your account has
insufficient funds
- Checks do not "bounce" when
you have this service

overdraft protection

a request that the bank not honor a specific check

STOP PAYMENT ORDER
- Usual reason for stopping payment is that the check
has been lost or stolen
- Most banks will charge a fee for stopping payment on
a check (usually $30ish fee)
- NOT A CANCEL CHECK

a box that you pay an annual fee for to store personal valuable belongings (ex. documents/jewelry)

safe deposit box

What should you do when looking for a bank/bank account to get?

SHOP AROUND find the best one that accommodates you

Something a bank charges you for either opening up an account or other operating costs

Bank fees

To match what what you think you have (register) to what the bank actually has

reconcile

check forms in specific denominations that are used instead of cash while traveling

travelers checks

a request that the bank not honor a specific check

stop-payment order

a plastic card that deducts money from a checking account almost immediately to pay for purchases

debit card

a personal check that the bank guarantees to be good

certified check

a computer based system that moves money from one account to another without writing a check or using cash

electronic funds transfer

a check written by a maker and the bank puts it on hold after taking the money out of the makers account to then give to the payee

cashiers check

A place at your bank available to store valuable items or documents

safe deposit box

bank service that covers check even if you have insufficient funds in your checking account

overdraft protection