Banking Basics
Money moved electronically between bank accounts is called:
A. Debit transaction
B. Electronic Funds Transfer (EFT)
C. Direct deposit
D. Wire receipt
B. Electronic Funds Transfer (EFT)
Who receives the money from a check?
A. Drawer
B. Bank teller
C. Payee
D. Depositor
C. Payee
Which endorsement only requires a signature and allows anyone to use the check?
A. Restrictive endorsement
B. Special endorsement
C. Blank endorsement
D. Certified endorsement
C. Blank endorsement
A summary of your account activity sent by the bank is called:
A. Receipt
B. Check register
C. Bank statement
D. Ledger
C. Bank statement
You should write checks in pen instead of pencil because:
A. It looks better
B. It prevents changes or fraud
C. It saves time
D. It’s required by law
B. It prevents changes or fraud
You write a check for more than your balance. What happens?
A. Deposit
B. Interest
C. Overdraft
D. Reconciliation
C. Overdraft
Which organization protects deposits up to $250,000?
A. IRS
B. FTC
C. FDIC
D. SEC
C. FDIC
Who writes and signs the check?
A. Payee
B. Drawer
C. Bank manager
D. Endorser
B. Drawer
Which endorsement limits how the check can be used?
A. Blank endorsement
B. Restrictive endorsement
C. Special endorsement
D. Open endorsement
B. Restrictive endorsement
Comparing your records with your bank statement is called:
A. Auditing
B. Balancing
C. Reconciling
D. Recording
C. Reconciling
Leaving blank spaces on a check is dangerous because:
A. It wastes space
B. It slows processing
C. Someone could alter the amount
D. It invalidates the check
C. Someone could alter the amount
You sign a check and give it away without restrictions. What endorsement is this?
A. Special
B. Restrictive
C. Blank
D. Certified
C. Blank
Why do banks require a signature card when opening an account?
A. To track spending habits
B. To verify your identity on transactions
C. To approve loans faster
D. To replace a debit card
B. To verify your identity on transactions
Signing the back of a check is called:
A. Depositing
B. Reconciling
C. Endorsing
D. Transferring
C. Endorsing
Which endorsement transfers a check to another person?
A. Restrictive endorsement
B. Blank endorsement
C. Special endorsement
D. Bank endorsement
C. Special endorsement
What tool helps you track your spending to avoid mistakes?
A. ATM
B. Debit card
C. Check register
D. Deposit slip
C. Check register
Why is the amount written twice on a check?
A. To make it longer
B. To verify accuracy
C. To meet bank rules
D. To track spending
B. To verify accuracy
You want only your bank account to receive the money. What should you write?
A. Pay to the order of
B. Cash only
C. For Deposit Only
D. Verified payment
C. For Deposit Only
Which account is primarily used for everyday spending?
A. Savings account
B. Checking account
C. Investment account
D. Credit account
B. Checking account
Which part of the check explains why the payment is being made?
A. Amount line
B. Memo line
C. Signature line
D. Routing number
B. Memo line
Which endorsement is the safest when depositing a check?
A. Blank endorsement
B. Restrictive endorsement
C. Special endorsement
D. Open endorsement
B. Restrictive endorsement
Spending more money than you have in your account results in:
A. Interest
B. Deposit
C. Overdraft
D. Balance
C. Overdraft
Who is responsible for tracking transactions accurately?
A. Only the bank
B. Only the customer
C. Both the bank and the customer
D. The government
C. Both the bank and the customer
You compare your bank statement and notice missing transactions. What are you doing?
A. Depositing
B. Reconciling
C. Endorsing
D. Withdrawing
B. Reconciling
What allows you to access your account through your phone or computer?
A. ATM access
B. Online banking
C. Paper statement
D. Mobile deposit slip
B. Online banking
Where should all deposits, withdrawals, and payments be recorded?
A. Bank statement
B. Check register
C. Debit slip
D. Account summary
B. Check register
“Pay to the order of…” is used with which endorsement?
A. Blank endorsement
B. Restrictive endorsement
C. Special endorsement
D. Deposit endorsement
C. Special endorsement
What helps cover transactions when you don’t have enough money?
A. Credit limit
B. Overdraft protection
C. Savings account
D. Direct deposit
B. Overdraft protection
After reconciling, what should happen?
A. The balance increases
B. The bank adjusts it
C. Both records match
D. The account closes
C. Both records match
If you forget to record purchases, what is the biggest risk?
A. Losing your card
B. Incorrect balance
C. Higher interest
D. Bank closure
B. Incorrect balance