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A checking account is also called a(n)_______ deposit, because the money may be withdrawn at any time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