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Managing and Understanding Checking Accounts Quiz

#1

What is the primary function of a checking account?

To facilitate everyday transactions
Explanation

Facilitates everyday transactions

#2

Which of the following is NOT a benefit of having a checking account?

High-interest earnings
Explanation

No high-interest earnings

#3

Which of the following is NOT typically required to open a checking account?

Minimum balance requirement
Explanation

No minimum balance requirement

#4

What is the purpose of a check register?

To record transactions and monitor account balances
Explanation

Transaction recording and balance monitoring

#5

Which of the following is NOT a common fee associated with checking accounts?

Interest rate fee
Explanation

No interest rate fee

#6

Which of the following is NOT a way to access funds in a checking account?

Using a credit card
Explanation

Not using a credit card

#7

What is an overdraft fee?

A fee charged when an account balance goes below zero
Explanation

Fee for negative balance

#8

What is the purpose of reconciling a checking account?

To ensure the bank's records match the account holder's records
Explanation

Matches bank and account holder records

#9

What does the term 'NSF' stand for in the context of checking accounts?

Non-Sufficient Funds
Explanation

Insufficient funds

#10

Which of the following is an advantage of using a debit card linked to a checking account?

Immediate deduction from the account balance
Explanation

Immediate deduction

#11

What is the purpose of a 'stop payment' order on a check?

To prevent the check from being cashed or deposited
Explanation

Prevents cashing or depositing

#12

What is the purpose of a routing number in a checking account?

To identify the bank and location of the account
Explanation

Bank and account location identification

#13

What is a common feature of online banking for checking accounts?

Ability to pay bills and transfer funds electronically
Explanation

Electronic bill payment and fund transfer

#14

What is the Federal Deposit Insurance Corporation (FDIC) responsible for?

Ensuring the safety of deposits in member banks
Explanation

Deposits safety assurance

#15

What does the term 'ACH transfer' stand for?

Automated Clearing House
Explanation

Automated transfer system

#16

What is the significance of the term 'cleared' in the context of check processing?

The check has been cashed or deposited successfully
Explanation

Successful cashing or depositing

#17

Which of the following is NOT a feature of mobile banking for checking accounts?

Limited security measures
Explanation

No limited security measures

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