#1
Which of the following is a characteristic of a checking account?
Allows unlimited withdrawals
ExplanationChecking accounts typically permit unlimited withdrawals.
#2
What is the primary purpose of a debit card?
To make purchases using funds from a checking account
ExplanationDebit cards are primarily used for purchasing goods or services using checking account funds.
#3
What is the purpose of a check register in managing a checking account?
To record all transactions and maintain an accurate balance
ExplanationA check register is used to record transactions and ensure an accurate account balance.
#4
Which of the following actions is NOT typically allowed with a debit card?
Writing a check
ExplanationDebit cards are not typically used for writing checks.
#5
What is the purpose of a check endorsement?
To transfer ownership of the check to another party
ExplanationCheck endorsement transfers ownership of the check to another party.
#6
Which of the following is NOT a potential fee associated with a checking account?
Withdrawal fee
ExplanationWithdrawal fees are not typically associated with checking accounts.
#7
What does it mean to 'balance' a checking account?
To reconcile withdrawals and deposits to ensure accuracy
ExplanationBalancing a checking account involves verifying withdrawals and deposits for accuracy.
#8
What is the purpose of a routing number for a checking account?
To identify the bank and location associated with the account
ExplanationRouting numbers are used to identify the bank and location of a checking account.
#9
What is the FDIC and how does it relate to checking accounts?
Federal Deposit Insurance Corporation, insures deposits in checking accounts
ExplanationFDIC insures deposits in checking accounts, providing protection to depositors.
#10
What is a 'float' in the context of a checking account?
The amount of time it takes for a deposited check to clear
ExplanationFloat refers to the time taken for deposited checks to clear in a checking account.
#11
What is Regulation D in the context of banking?
A law that sets limits on the number of withdrawals from savings accounts
ExplanationRegulation D imposes restrictions on the number of withdrawals from savings accounts.
#12
What is the typical grace period for reporting fraudulent activity on a checking account?
3 business days
ExplanationThe standard grace period for reporting fraudulent activities on a checking account is usually three business days.
#13
What is a 'stop payment order' in the context of a checking account?
A request to cancel a check before it is processed
ExplanationA stop payment order is a request to cancel a check before it is processed by the bank.