Download Ch 9 Test Study Guide

Ch 9 Test Study Guide
Terms for Test:
Checkbook Register
Checking Account
Currency
Endorse
Financial Institutions
Floating a Check
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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.