Personal Finance 26

What are the 4 type of endorsements?

1. Blank 2. Special 3. Restrictive

What is the purpose of endorsements?

1. Cash, check and transfer. 2. Legal evidence that the check was cashed or transferred. 3. Endorsers will pay the check in case the next person can't.

What are the 4 advantages of a checking account?

1. Convenience 2. Safety 3. Proof of payment 4. Record of finance

What are the 2 types of checking accounts?

1. Regular checking 2. Interest checking

What is a signature card?

A card that you sign your name on when you open an account.

What is a service charge?

A fee that the bank had to pay.

What is a check stub?

A form attached to the check.

What is a deposit slip?

A list of all items you are depositing.

What is a money market rate?

Current cost of money in a market place.

What is restrictive endorsement?

Limits the use of the check to the purpose given in the endorsement.

What is a special endorsement?

No one but the person the check is being transferred to can cash that check.

What is a check register?

Separate book, usually the size of a check book.

What is the leading edge?

The front of the check on the right side.

What is the trailing edge?

The left side of the check.

What is a float?

The time between the receipt of the deposit and the bank.

What is a joint account?

Two or more people share an account.

What are share drafts?

When shareholders have money on their deposit and checks.

What does it mean to endorse a check?

You have to sign your name on the left end of the check.