Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Ch 9 Test Study Guide Terms for Test: Checkbook Register Checking Account Currency Endorse Financial Institutions Floating a Check Joint Account Maker, Drawer Overdraft Payee Postdated Check A check is a negotiable instrument. Checks are subtracted from the checkbook register and deposits are added. There is normally a fee for overdrafts/bad checks. Do not postdate a check. When filling in the written amount on a check, use the word “and” to separate the dollar and cents amount. You do not have to write the word “dollars” at the end. Reconciliation is the process of matching your checkbook register with the bank statement. An interest bearing account pays interest to a depositor when an average minimum monthly balance is maintained. A disadvantage of an interest-bearing account is that the minimum monthly balance requirement may be high. A checking account with which you pay a fee for each check processed is called a special account. With a joint account, either depositor may have access to the money at any time. A certified check is a personal check that the bank guarantees or certifies to be good. A cashier’s check is a check written by the bank on its own funds. A financial institution that offers all types of services is called a full-service bank. A checking account offered by a credit union is called a share draft. A deposit box is used to store important documents, jewelry, collectibles, and other small valuables. An ATM is used to make withdrawals, deposits, check account balances, and to transfer money. Examples of financial institutions include banks, savings and loan association, and credit unions. When completing a deposit slip with checks, each check should be identified by ABA number and amount. A restrictive endorsement restricts or limits the use of a check. It is recognized by the words “for deposit only” followed by your signature. An endorsement in full is also called a special endorsement. This endorsement transfers the right to cash the check to someone else. Money orders can be purchased from such places as a grocery store, convenient store or post office. The FDIC insures deposits up to $100,000 per account holder.