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Chapter 5: Checking Accounts Flashcards | StudBud
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Chapter 5: Checking Accounts
Chapter 5: Checking Accounts
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StudBud Administration
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Chapter 5 Personal Financial Literacy 2e
Flashcards
25 cards
F
Practice quiz
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Host live
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Questions
25
Answers
1
The process of adjusting checkbook & bank balances so that they agree.
endorsement
bank reconciliation
withdrawal
withdrawal
2
Accessing and managing your account online.
consumer banking
smart banking
internet banking
direct banking
3
Money added to a checking account.
mutual fund
deposit
credit
withdrawal
4
A written order to a bank to pay a stated amount to a person.
bank reconciliation
check
deposit slip
postdated check
5
The use of a computer-based system to move funds from the drawer's account to payee's account.
electronic funds transfer
deposit
withdrawal
bank reconciliation
6
FDIC protects depositors of insured banks against the loss of deposits if bank fails.
False
True
7
What is the advantage of direct deposit?
none, I would rather stand in line to cash my check
I get to talk to the bank tellers.
instant access to your money
I can't get cash if I don't go to the bank
8
What is the purpose of a signature card?
Provides an official signature to match signature on a check
Don't know what a signature is
Use it at the ATM
Check for errors on check
9
Interest earned on both principal and previously earned interest.
simple interest
compound interest
relative interest
inherited interest
10
When you endorse the back of a check made out to you it is this type of endorsement.
blank endorsement
special endorsement
restrictive endorsement
personal endorsement
11
A demand deposit account on which checks are drawn.
credit card account
mutual fund
savings account
checking account
12
If you invest $1000 at 15% simple interest at the end of 1 year you will have.
$1150
$1800
$1250
$1500
13
What is the purpose of a checking account?
Gain a lot of interest on my money
Got checks, got money!
Safe place to keep money & allows users easy access to it
Everyone accepts checks
14
A card used to withdraw or deduct money from your checking account.
gift card
debit card
credit card
pre-paid card
15
A signature written on the back of a check.
endorsement
withdrawal
checkbook register
reconciliation
16
A fixed amount set aside on a regular basis over time.
annuity
savings bond
savings account
checking account
17
Quick formula for computing how long it will take to double your money at a given interest rate
compound interest
rule of 90
rule of 72
simple interest
18
What is the purpose of a checkbook register?
authorizes bank to cash check
for electronic funds transfers
allows the user to withdraw cash
track checking account transactions
19
A tool used to track checking account transactions
checking account
checkbook register
endorsement
postdated check
20
A check written with a date that will occur in the future.
outdated check
check
future check
postdated check
21
Interest computed on principal once during a certain time period.
compound interest
simple interest
annuity
rule of 72
22
The Federal Deposit Insurance (FDIC) is an independent agency of the U.S. government.
True
False
23
Your bank will hold you responsible for check fraud.
True
False
24
A _endorsement is made by writing “For deposit only” on the first line of the back of the check
blank
restrictive
special
personal
25
A sum of money set aside on which interest is paid.
deposit
principal
compound interest
$1000
