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Checks
Checks
A(n) __________ endorsement is the signature of the payee written exactly as his or her name appears on thefront of the check.
Blank Endorsement
What is the best way to avoid banking fees?
The best way to avoid fees is to choose the right kind of account. For example, if you need to write a large number of checks each month, sign up for an account that does not charge a per-check fee. Some accounts charge a fee for using a teller. Only sign up for such an account if you have your paycheck directly deposited by your employer and can do almost all your transactions online or by ATM. Shop around and find the account that is right for you. Be aware of the rules of your account, so that you don’t violate them, resulting in high fees. If your account requires a
minimum balance, plan enough cushion so that your balance will not drop below that amount.
With __________ protection, your checks will be covered even if you have insufficient funds in your checking account.
Overdraft
A request that a bank not honor a specific check is called a(n)
Money Market Account
Gary purchased two money orders from his bank: one for $41.50 and one for $32.65. Each money order cost one dollar. What is the total amount Gary spent at the bank?
$76.15
A(n) __________ is a written order to a bank to pay the amount stated to the person or business named on it.
Check
A request that a bank not honor a specific check is called a(n)
Stop Payment
When a check is returned to the payee’s bank due to insufficient funds, the check is said to have
Bounced
What kinds of services do full-service banks typically offer?
Full-service banks typically offer savings and checking accounts, credit cards, safe deposit boxes, loans, ATMs, online and telephone banking, certified and cashier’s checks, money orders, and debit cards.
Ted begins the month with a checking account balance of $1,400. He writes five checks: one for $350.45, one for $200.01, one for $11.53, one for $68.10, and one for $177.37. He makes two deposits, each for $450. His bank charges him a $0.25 fee for each check she writes. He also pays a monthly account fee of $5.00. What is the balance of Ted’s account at the end of the month?
$1486.29
A check is written to Taylor Thomas. On the back of the check, Taylor writes “Pay to the order of Rose Dryer,” then signs his name. What kind of endorsement is this?
Special Endorsement
A(n) __________ verifies a person’s identity, witnesses the person’s signature on a legal document, and then “notarizes” the signature as valid.
Notary Public
When you open a checking account, most banks will require you to have an initial deposit of at least
$50
Describe the two ways you can pay bills online.
To pay bills online, you have two choices. First, you can register at the website of the business to which you will be
making payments. You will give them your routing number and checking account number. Each month you can
authorize a payment, or you can allow the business to take automatic payments from your account. Second, you can pay bills from your own bank. To do this, you must first register at your bank’s website. In that process, you establish your personal identification number (PIN) or password to gain entry into your account. Screen prompts will lead you to the bank’s online bill payment page.
Erin does not have to pay a fee if she uses her own bank’s ATM, but she must pay a $2.00 fee if she uses another bank’s ATM. If Erin makes 76 ATM transactions over the course of a year, and 25 percent of them are at another bank’s machine, how much will she pay in ATM fees?
$38.00
The person to whom a check is payable is called the
Payee
Financial institutions offer customers a(n) __________ box to store valuable items or documents.
Safe Deposit
Darren writes a check to the phone company for $45.60. He record this amount in his checkbook register in the
Payment/Debit Column
What is the amount of deposit insurance protection provided by the FDIC per account?
$250,000
Suppose your bank charges you a monthly fee of $8.00 plus 15 cents for each check you write. If you write three checks every month, how much will you pay your bank in fees over the course of one year?
$101.40
A check written by a bank on its own funds is called a
Cashiers Check
A person or institution that manages property for the benefit of someone else under a special agreement is called a(n)
Trustee
floating a check is
Floating a check occurs when a person writes a check, hoping to deposit money to cover it before it clears.
What is an ABA number? Explain the two parts of an ABA number.
The American Bankers Association (ABA) number appears in fraction form in the upper right corner of each check. The top half of the fraction identifies the location and district of the bank from which the check is drawn; the bottom half helps in routing the check.
Marti begins the month with a checking account balance of $700. She writes three checks: one for $43.50, one for $90.00, and one for $250.00. She makes one deposit, for $300. Her bank charges her a $0.20 fee for each check she writes. She also pays a monthly account fee of $5.00. What is the balance of Marti’s account at the end of the month?
610.90