Checking Account & Debit Card
-
What are common financial services used by many consumers?
-
Checking account and debit card
-
Checking account and stock issues
-
Debit card and stock issues
-
Stock issues and bonds
-
This quiz titled 'Checking Account & Debit Card' assesses knowledge on accessing funds, writing checks, using common financial services, understanding endorsements, and managing a check register. It is essential for those learning personal finance management.
Quiz Preview
- 2.
What is a check register?
-
A place to get free movies.
-
A place to record telephone calls.
-
A place to record all monetary transactions
-
A place to call home.
Correct Answer
A. A place to record all monetary transactionsExplanation
A check register is a tool used to keep track of all monetary transactions. It serves as a record of deposits, withdrawals, and other financial activities, typically associated with a bank account. By maintaining a check register, individuals can monitor their spending, track their balances, and reconcile their accounts with bank statements. It is an essential tool for managing personal finances and ensuring accurate record-keeping.Rate this question:
-
- 3.
How are funds in a checking account accessed?
-
Check and ATM
-
Debit card
-
Telephone and Internet
-
All of the above
Correct Answer
A. All of the aboveExplanation
All of the above options (check and ATM, debit card, telephone and internet) can be used to access funds in a checking account. A check can be written to withdraw funds, an ATM can be used to withdraw cash or make deposits, a debit card can be used to make purchases or withdraw cash, and telephone and internet banking services can be used to transfer funds or make payments. Therefore, all of these options provide access to funds in a checking account.Rate this question:
-
- 4.
What should be filled out when making a deposit at the bank?
-
Check
-
Debit Card
-
Deposit slip
-
Sales slip
Correct Answer
A. Deposit slipExplanation
When making a deposit at the bank, a deposit slip should be filled out. A deposit slip is a form provided by the bank that allows the depositor to specify the amount of money being deposited, whether it is cash or checks, and the account to which the funds should be credited. This slip helps the bank accurately process the deposit and ensures that the funds are deposited into the correct account.Rate this question:
-
- 5.
Why is it important to record all transactions in the check register?
-
Keep accurate record
-
Keep track of checks written
-
Keep track of deposits
-
All of the above
Correct Answer
A. All of the aboveExplanation
It is important to record all transactions in the check register because it helps in keeping accurate records of all financial activities. By recording checks written, one can keep track of the amount and recipient of each payment made. Similarly, recording deposits allows one to keep track of the amount and source of each incoming payment. By recording all transactions, one can maintain a clear and organized record of their financial transactions, which is essential for budgeting, reconciling bank statements, and identifying any discrepancies or errors.Rate this question:
-
- 6.
Why do people use checking accounts?
-
Can spend more money
-
Reduces the need to carry large sums of cash
-
Convenient and Safety
-
Both b and c
Correct Answer
A. Both b and cExplanation
People use checking accounts because it allows them to spend more money without the need to carry large sums of cash. Additionally, checking accounts are convenient and provide a safer way to make transactions compared to carrying cash. Therefore, the correct answer is "Both b and c."Rate this question:
-
- 7.
Why does a check bounce?
-
Has too much air in it.
-
Insufficient funds
-
More than enough funds
-
All of the above
Correct Answer
A. Insufficient fundsExplanation
A check bounces when there are insufficient funds in the account to cover the amount written on the check. This means that the person who wrote the check does not have enough money in their account to fulfill the payment. As a result, the check cannot be processed and is returned to the recipient as unpaid.Rate this question:
-
- 8.
The steps in writing a check are:
-
Amount, payee, date, signature
-
Signature, payee, amount, date
-
Date, payee, amount, signature
-
Date, amount, payee, signature
Correct Answer
A. Date, payee, amount, signatureExplanation
The correct answer is "date, payee, amount, signature". This is the correct order of the steps in writing a check. The date is typically written first, followed by the payee (the person or company you are writing the check to), then the amount in numbers, and finally your signature to authorize the payment. This order ensures that all the necessary information is included and helps prevent any mistakes or confusion when processing the check.Rate this question:
-
- 9.
What is the term for balancing the checkbook with the bank statement?
-
Reconciling
-
Balancing
-
Checking
-
Registering
Correct Answer
A. ReconcilingExplanation
Reconciling is the term used to describe the process of comparing and matching the transactions in one's checkbook with the transactions listed on the bank statement. It involves ensuring that the amounts and dates of the transactions are accurate and that there are no discrepancies between the two records. This process helps to identify any errors or fraudulent activities and ensures that the account balance is correct.Rate this question:
-
- 10.
What are the three types of endorsements?
-
Blank, Reduced, and Special
-
Blank, Restrictive, and Spectacular
-
Bold, Restrictive, and Special
-
Blank, Restrictive, and Special
Correct Answer
A. Blank, Restrictive, and SpecialExplanation
The three types of endorsements are blank, restrictive, and special. A blank endorsement is when the payee signs their name on the back of the check, making it payable to anyone who possesses it. A restrictive endorsement is when the payee adds restrictions on how the check can be used, such as "for deposit only." A special endorsement is when the payee signs the check and designates it to be payable to a specific person or entity.Rate this question:
-
- 11.
When recording a debit card transaction in the check register, what should you write in the number column.
-
DEP
-
DC
-
D
-
ATM
Correct Answer
A. DCExplanation
When recording a debit card transaction in the check register, you should write "DC" in the number column. This abbreviation stands for "debit card" and helps to identify the type of transaction being recorded. Writing "DC" in the number column allows for easy reference and tracking of debit card transactions in the check register.Rate this question:
-
- 12.
Why should you write in cursive when signing a check?
-
It is more difficult to read
-
It is more difficult to see
-
It is more difficult to copy
-
All of the above
Correct Answer
A. It is more difficult to copyExplanation
When signing a check, writing in cursive makes it more difficult to copy the signature accurately. Cursive writing is often more complex and has unique flourishes and connections between letters, making it harder for someone to replicate the signature precisely. This adds an extra layer of security to prevent fraud or unauthorized use of the check.Rate this question:
-
- 13.
When making a withdrawal at an ATM machine, what should you write in the number column of the check register.
-
ATM
-
DC
-
WITHDRAWAL
-
DEP
Correct Answer
A. ATMExplanation
When making a withdrawal at an ATM machine, you should write "ATM" in the number column of the check register. This is because "ATM" represents the transaction type, indicating that the withdrawal was made at an automated teller machine. Writing "ATM" helps to keep track of the specific type of transaction and allows for accurate record-keeping in the check register.Rate this question:
-
- 14.
When recording deposit in the check register, what should you write in the number column.
-
D or DC
-
DC or DEP
-
DEP or ATM
-
DEP or D
Correct Answer
A. DEP or DExplanation
When recording a deposit in the check register, you should write "DEP" or "D" in the number column. This indicates that a deposit has been made into the account. Both "DEP" and "D" are commonly used abbreviations to represent a deposit in financial records.Rate this question:
-
- 15.
What information is located on an account holder's check in the top left corner?
-
Name, address, financial institution, ID number
-
Name, address, financial institution, account number
-
Name, address, financial institution, date
-
None of the above
Correct Answer
A. Name, address, financial institution, ID numberExplanation
The top left corner of an account holder's check typically contains their name, address, financial institution, and ID number. This information is important for identification and verification purposes. The account number is usually located at the bottom of the check, not in the top left corner.Rate this question:
-
Quiz Review Timeline (Updated): Mar 19, 2023 +
Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
-
Current Version
-
Mar 19, 2023Quiz Edited by
ProProfs Editorial Team -
Sep 10, 2010Quiz Created by
Donelson
Back to top