Life Skills A: Unit 4

A __________________ is used when you have given a check to someone and then realize that you have a legal reason for withholding payment.

Stop payment order

Which type of insurance provides coverage for a person's entire life?

Permanent insurance

A ______________________ directs the bank to transfer a specific amount of money from your account each month.

Pre-authorized payment

A _________________ tells the financial institution who is authorized to write checks on an account.

Signature card

In which type of investment do you own part of the company?

Stocks

Where is the correct location for endorsing a check?

The back of the check on the trailing edge.

What does it mean to reconcile your checking account?

To compare your check register with the bank statement to check for errors.

Automated banking can be done on-line or by using a touch tone telephone. It allows you to check your balance, transfer money, or pay bills electronically.

True

When using a debit card, it is important to record the amount spent in a checkbook register.

True

How is a credit union different from a bank?

A credit union is owned by its depositors, or members.

Which information is good to record in your check register?

All of the above

Which of the following is a disadvantage to using a debit card?

Encourages the opportunity for impulse spending.

Which type of check endorsement is used to transfer a check to another person?

Endorsement in full

It is a good idea to write your check before filling out your check register.

False