Business Chapter 17

A user-owned, not-for-profit cooperative financial institution is called a(n) ______________ union. credit missing reserve stop endorsement outstanding sale transfer full pawnshop service trust insurance register special activity

credit

A(n) ________________ is written evidence that you received payment or that you transferred your right of receiving payment to someone else. credit missing reserve stop endorsement outstanding sale transfer full pawnshop service trust insurance register special activity

endorsement

Commercial banks are often called ___________ service banks because they offer a wide range of financial services. credit missing reserve stop endorsement outstanding sale transfer full pawnshop service trust insurance register special activity

full

The Federal Deposit _____________________________ Corporation protects depositors' money in case of the failure of a bank or financial institution it regulates. credit missing reserve stop endorsement outstanding sale transfer full pawnshop service trust insurance register special activity

insurance

Checks that have not yet been deducted from your bank statement balance are called ___________________ checks. credit missing reserve stop endorsement outstanding sale transfer full pawnshop service trust insurance register special activity

outstanding

A(n) _________________ makes loans based on the value of some tangible object such as jewelry or other valuable item. credit missing reserve stop endorsement outstanding sale transfer full pawnshop service trust insurance register special activity

pawnshop

A check _______________ is a separate book, usually the same size as your checkbook, in which you can record account activities. credit missing reserve stop endorsement outstanding sale transfer full pawnshop service trust insurance register special activity

register

In a point-of-__________________ transaction, a merchant accepts a debit card to pay for purchases. credit missing reserve stop endorsement outstanding sale transfer full pawnshop service trust insurance register special activity

sale

A bank charges a fee called a ________________ charge for handling many checking accounts. credit missing reserve stop endorsement outstanding sale transfer full pawnshop service trust insurance register special activity

service

If you write only a few checks each month, you should consider a(n) _________________ checking account. credit missing reserve stop endorsement outstanding sale transfer full pawnshop service trust insurance register special activity

special activity

A(n) ___________ payment order is a written notice that tells the bank not to pay a certain check.

stop

Electronic funds ___________________ refers to the user of computers and other technology for banking activities. credit missing reserve stop endorsement outstanding sale transfer full pawnshop service trust insurance register special activity

transfer

When customers ask banks to manage investments on their behalf, the money or property that is turned over for the bank to manage is said to be in ________________________. credit missing reserve stop endorsement outstanding sale transfer full pawnshop service trust insurance register special activity

trust

A personal check for which a bank has guaranteed payment is called a a. traveler's check b. certified check c. banker's check d. cashier's check

B

All of the following are improper check writing procedures EXCEPT a. postdate all of your checks b. avoid making checks payable to "Cash" c. overdraw your account whenever possible. d. write your checks in pencil

B

An interest-earning checking account a. is a good choice if you are depositing a large amount of money b. usually earns interest only if the account stays above the required amount c. generally pays very high interest rates d. usually requires a lower monthly balance than regular checking accounts.

B

The paying of checks among different banks in different cities is called a. bouncing b. clearing c. reserving d. kiting

B

This non-deposit financial institution specializes in making loans for long-lasting or durable goods, such as cars and refrigerators, and for financial emergencies. a. investment company b. consumer finance company c. credit union d. pawnshop

B

When you put money into your checking account, you will fill out a a. check register b. deposit slip c. check stub d. signature card

B

Alexi is looking for a new bank. He is most concerned with finding a bank that offers 24-hour banking services. He is most concerned with a. restrictions b. fees c. convenience d. safety

C

Except for some retirement accounts, the FDIC insures all accounts in the same name at each bank up to an amount of a. $2500 b. $2,500,000 c. $250,000 d. $25,000

C

Mutual savings banks are organized mainly for: a. business loans b. automobile loans c. savings and home loans d. check cashing

C

The person to whom a check is written is the a. drawee b. drawer c. payee d. endorser

C

Typical e-banking services allow customers to do all of the following EXCEPT a. transfer funds from savings to checking b. pay bills online c. print new checks d. obtain cash

C

You use a ___________________ card for ATM transactions a. credit b. stored value c. debit d. smart

C

Zack has endorsed a check by writing "For deposit only" above his signature. This is a a. full endorsement b. blank endorsement c. restrictive endorsement d. special endorsement

C

Which of the following is NOT a deposit institution a. savings and loan association b. commercial bank c. mutual savings bank d. check cashing outlet

D

All state and national banks are required to join the Federal Reserve System. (T/F)

F

Most banks charge a fee for each check written on a regular checking account (T/F)

F

Most financial analysts do not expect much further change in the way Americans use banks and money. (T/F)

F

The most common way for a bank to be organized is a mutual savings bank. (T/F)

F

Almost ______________ percent of US banks are FDIC members. a. 99 b. 90 c. 75 d. 50

A

Bonita writes many checks each month. Which type of checking account is probably best for her? a. regular checking account b. special checking account c. activity checking account d. interest-earning checking account

A

This type of money order is typically issued by travel agencies, supermarkets, pharmacies, and convenience stores. a. express money order b. bank money order c. telegraphic money order d. postal money order

A

When you use a debit card in a store or a restaurant a. the amount of the purchase is deducted from your bank account b. you pay a surcharge c. the amount of the purchase is deducted from the stored value on the card d. you are borrowing money

A

With __________, the bank deducts payments from your account and transfers them to the appropriate companies. a. automatic bill payment b. automatic teller machines c. direct deposit d. credit cards

A

You can store valuables at a bank by purchasing the use of a a. safe-deposit box b. strongbox c. post office box d. padlock box

A

The Federal _________________ System supervises and regulates member banks and helps banks serve the public efficiently. credit missing reserve stop endorsement outstanding sale transfer full pawnshop service trust insurance register special activity

Reserve

A blank endorsement makes a check payable to anyone who has the check. (T/F)

T

A canceled check is a check that has been paid by the bank. (T/F)

T

Banks are prohibited from lending all of the money the receive from customers. (T/F)

T

Banks sometimes charge depositors fees for certain services, such as using an ATM or having a checking account. (T/F)

T

If you lose your debit card, your liability for unauthorized use is only $50 if you notify your financial institution within two days of the loss. (T/F)

T

Not even the bank has the right to open your safe-deposit box. (T/F)

T