Chapter 17: Banking and Financial Services
Only you or the bank has the right to open your safe-deposit
False
State banks may not join the Federal Reserve System
False
Stored-value cards allow you to use money that is in your checking account
False
All of the following are good check-writing habits EXCEPT
Void
The United States is divided into _______ Federal Reserve districts, with a central Federal Reserve bank in each district
12
They make loans based on the value of jewelry or some valuable item
Pawnshops
A signature card is a written notice that tells the bank not to pay a certain check
False
An endorsement that consists of only the endorser's name
Blank endorsement
A check that a bank draws on its own funds is called a
Cashier's check
Refers to the process of making payments among different banks
Clearing
This the most common way for a bank to be organized
Commercial bank
When you use this card, you are borrowing from the bank to pay later
Credit card
An interest-earning checking account is probably the best choice for the people who write only a few checks each month
False
When you put your money into a checking account, you fill out a
Deposit slip
An endorsement that allows you to transfer a check to another person
Full endorsement
Checking accounts and debit cards are examples of a financial institution's
Payment services
Which of the following is a non-depository financial institution?
Life Insurance Company
A savings bank owned by and operated for the benefits of depositors
Mutual Savings Bank
A user-owned, non-profit, cooperative financial institution is called
Mutual Savings Bank
A merchant accepts debit cards to pay for purchases with
Point-of-sale transactions
The part of the money deposited by customers that banks are required to deposit with the Federal Reserve System
Reserves
A fee a bank charges for handling a checking account
Service charge
A prepaid card for phone service and other similar transactions
Stored-value card
A commercial bank often is called a full-service bank
True
Clearing refers to the process of making payments among different banks
True
Savings and loan associations traditionally specialized in making loans for home mortgages
True
Sometimes two or more people have a checking account together, called a joint account
True
The owner of the account who signs the check is the drawer
True
Money or other property that is turned over to a bank to manage for a customer is said to be held in
Trust
