CHECKING ACCOUNT BASICS
This type of bank account allows you to deposit money and use checks, debit cards, or electronic transfers to pay for purchases and bills.
What is a checking account?
This is a written order directing a bank to pay a specific amount of money from one person's account to another person or business.
What is a check?
This form is used to record the cash and checks you are depositing into your bank account.
What is a deposit slip?
This machine allows customers to withdraw cash, check balances, and sometimes make deposits without visiting a bank teller.
What is an automated teller machine (ATM)?
This is a record used to track deposits, withdrawals, checks, fees, and the balance of a checking account.
What is a check register?
You write a $75 check to your electric company. The electric company is known as the ________.
What is the payee?
Before depositing or cashing a check, the person receiving it may sign the back. What is this action called?
What does it mean to endorse a check?
Instead of receiving a paper paycheck, an employer electronically places your paycheck directly into your checking account. What is this called?
What is direct deposit?
You enter a four- or six-digit secret number when using your debit card at an ATM. What is this number called?
What is a personal identification number (PIN)?
Your checking account balance decreases by $85 when you purchase new shoes with your debit card. The $85 transaction is recorded as what?
What is a debit?
Maria writes a $125 check to her landlord. In this transaction, Maria is the person who authorizes the check and whose account will be charged. What is Maria called?
What is the drawer?
A check has been processed by the bank and the money has been taken from the drawer's account. What is the status of the check?
What is a canceled check?
Your car insurance company automatically takes $145 from your checking account each month to pay your bill. What type of transaction is this?
What is an electronic funds transfer (EFT)?
A hotel temporarily sets aside $200 of your available checking-account funds when you check in, even though you have not actually been charged the final amount yet. What is this temporary restriction called?
What is a hold?
Your employer deposits $1,800 into your checking account. In your check register, this amount is recorded as what?
What is a credit?
James has a checking account in his name only. He deposits $1,500 into the account, then writes checks totaling $425. How much remains, assuming no other transactions?
What is a single account, and the balance is $1,075?
Tyler writes a $240 check to a store. The store deposits it, and the banks process the check before the $240 is deducted from Tyler's account. What banking process is taking place?
What is check clearing?
Jordan has $825 in his checking account. His paycheck of $1,420 is deposited directly into his account. He then pays a $375 bill electronically. What is his new balance?
$1,870
Your checking account has $780. You withdraw $120 from an ATM and are charged a $3 ATM fee. What is your new available balance?
$657
Your bank charges you $12 each month for maintaining your checking account. If you start the month with $950 and have no other transactions, what is your ending balance?
$938
A married couple has a joint checking account with $2,400. One person withdraws $350, while the other deposits $725. What is the new balance?
What is a joint account, and the balance is $2,775?
A checking account has $1,850. The account owner writes a $325 check for rent and a $175 check for groceries. Both checks clear the bank. What is the new balance?
$1,350
A checking account begins with $950. A direct deposit adds $1,650. An electronic transfer pays a $420 phone bill, and another electronic payment of $185 is made for insurance. What is the final balance?
$1,995
Your account has $2,000. A hotel places a $350 hold on your account. You then withdraw $400 from an ATM. Assuming the hold remains in place, how much money is available for other purchases?
$1,250
Your checking account has $300. You write a $450 check. Your bank approves the transaction using overdraft protection and charges a $25 overdraft fee. How much money must you repay to bring the account back to a $0 balance?
$175