Accounts
T/F
In a checking account you cannot withdraw without writing a check.
TRUE
Checks maintain a _____ record of the payments
Permanent
On what side are check stubs recorded on the check info?
Left
T/F
The account holder doesn't need to initial a check if minor corrections are made
False
This type of account uses no checks
Savings Account
T/F
Certified checks are used for large purchases such as equipment
False
Cashier check
The bottom of the check has an MICR line written in ____ _____
magnetic ink
What should be written on a check and check stub if a mistake is made?
VOID
Money Market Account checks must be for at least _____ and only a specific amount can be drawn each _____
$500, Month
This check is more reliable and drawn by the bank itself
Cashiers check
Info on a check is name and address of account holder and name of _____
bank
You should never file voided checks
False
This can be gained as long as a minimum balance is maintained
Insurance
What is another way to guarantee a check?
Certified check (bank withdraws funds from account when check is issued)
Where does the ABA routing number go?
under the check number on the right
Why should checks be produced on watermark paper?
to make it hard to erase and overwrite
Money Market Accounts have (higher/lower) minimum balance than checking account
Higher
Why would you use a cashiers check?
To assure payee that funds are available
The American Bankers Association gives each bank a unique number called what?
ABA routing number
Why do checks have memo lines?
to explain the purpose of the check