Ch.9 Personal Finance Study Guide

A check is written to Tonya Thomas. On the back of the check, Tonya writes " pay to the order of Mary Smith," then signs her name. What kind of endorsement is this?

a special endorsement

Which part of the check provides a place for you to write a purpose of the check? a.) the signature sign b.) the memo line c.) the counting number d.) the payee line

b.) the memo line

A _______ endorsement results when a payee signs on the back For Deposit Only and then signs his/her name

blank

A(n)______ endorsement is the signature of the payee written exactly as his or her name appears on the front of the check

blank

When a check is returned to the payee's bank due to insufficient funds, the check is said to be _________

bounced

Darren writes a check to the phone company for $45.60. He should record this amount in his checkbook register in the a.) fee column b.) balance column c.) payment/ debit column d.) deposit/credit column

c.) payment/debit column

A check written by a bank on its own funds is called____

cashiers check

A personal check that the bank guarantees to be good is called a(n)_______c heck

certified

A______ check is guaranteed payment check drawn on customer's account

certified

A(n)______ is a written order to a bank to pay the amount stated to the person or business named on it

check

A booklet used to record checking transactions is called a__________

checkbook register

A(n) _______ card is a plastic card that allows immediate deductions from a checking account to pay for purchases

debit

A checking account is also called a(n)_______ deposit, because the money may be withdrawn at any time

demand

t/f A check cannot be cashed until it has been reconciled

false

t/f A debit card is the same as a credit card

false

t/f Debit cars transaction do not need to be recorded in checkbook register

false

t/f It is a good practice to write your PIN number on your debit card

false

t/fFDIC insurance protect the deposits of customers against loss up to $1,000,000 per account

false ( 250,000)

t/f Paying bills online is generally considered slower and more risky than writing checks

false ( it is faster and less risky)

t/f The column headed by a check mark in the checkbook register is so you can make a note of your checks that have bounced

false (canceled(cleared the back))

A(n)________ verifies a person's identity, witnesses the person's signature on a legal document, and then "notarizes" the signature as valid

notary public

A check written for more money that your account contains is called a(n)_______

overdraft

With______ protection, your checks will be covered even if you have insufficient funds in your checking account

overdraft

A person who cashes a check is called ________

payee

Financial institutions offer customers a(n)_______ box to store valuable items or documents

safe deposit

Check over ___old may not be honored by a bank

six months

A request that a bank not honor a specific check is called _____

stop-payment order

t.f A canceled check is one that has been processed by the back

true

t/f A money order can never bounce

true

t/f Floating a check is illegal in most states

true

t/f Moeny orders are considered guaranteed funds

true

t/f The usual reason for a stop-payment order is that the check has been lost or stolen

true

t/f Writing a future date on a check is called postdating

true

t/f Writing a future date on a check is known as postdating a check

true

t/f you should reconcile your checking account as soon as you receive your bank statementq

true