CHAPTER 5: Checking Accounts
SECTION 1: Basic Banking Concepts
1. What does the bank do with the money you put in a savings account?
2. The cost of the bank using your money is paid to you in the form of what?
3. How is a checking account different from a savings account?
4. A written request to your bank to take money from your account and pay it to someone else is called what?
5. What does a debit card allow you to do that checks can’t do?
6. What is the most common type of financial institution?
7. What agencies regulate these institutions?
8. What were savings and loan associations (S&Ls) originally set up to do? What do they do now?
9. Who owns and operates credit unions? 10. How do credit unions distribute profits?
11. What service do payday lenders provide?
12. Who do payday lenders target and why?
13. What is a postdated personal check?
14. What are two ways of renewing a payday loan?
15. What are five examples of different types of financial transactions?
16. Any paycheck, cash, or other money you put in your checking account is called a what?
17. What is the difference between a debit and a credit?
18. A movement of funds from one account to another is called a what?
19. What is the Automated Clearing House (ACH)?
20. What are four different types of checking accounts? SECTION 2: Checking Account Tools
1. What are the two major tools to use with your checking account?
2. What personal information is included on individual checks?
3. What special feature do duplicate checks have?
4. You can use your debit card to withdraw cash from what type of machines?
5. In terms of how fast money is removed from your account, what is the difference between checks and debit cards?
6. What is the leading reason for overdrafts?
7. What two types of fees may a bank charge you for use of their ATMs?
8. How were checks processed prior to 2004?
9. What has made it easier for companies to process checks since 2004?
10. What does “floating” a check refer to?
11. What two financial transactions do banks process immediately? 12. What are five types of checking account fees?
13. What do you call the fee that some banks charge for maintaining a checking account?
14. In 2007, banks charged nearly how much in ATM fees?
15. Online bill-pay services avoid using checks by allowing you to do what?
16. When do banks charge overdraft or NSF fees?
17. What is the typical fee for a stop-payment order?
18. What are four reasons you may request a stop-payment order?
19. To whom should you go for information and explanations when comparing the accounts at different institutions?
20. If a justified ATM fee hits your account, what should you do to avoid similar fees in the future? SECTION 3: Using a Checking Account
1. What is the purpose of a signature authorization form?
2. What special characteristics might a “student” checking account have?
3. What does it mean to balance your checkbook?
4. Physically writing checks for a period of time is the best way to learn what?
5. In what two ways do you fill in the dollar amount on a check?
6. If you don’t have check copies, where should you record the check information?
7. What should you do if you make a small mistake on a check?
8. What should you always do to unused checks before throwing them away?
9. Where are two places you can find deposit slips?
10. When depositing a check, where should it be endorsed? 11. What does it mean to reconcile your accounts?
12. Your account statement is a list of what?
13. What do outstanding checks and outstanding deposits have in common?
14. What are the five basic steps to reconciling your account?
15. If you find a legitimate bank error on your statement, what should you do?
16. What two things will you need to select in order to access your bank’s online features?
17. What is one of the great benefits of online banking?
18. What are at least three examples of bills that can be paid online?
19. What is the auto bill-pay feature?
20. To protect your account security, you should avoid accessing your online banking service from where?