Categories
Finance Flashcards

Personal Finance

Explain the difference between the two major kinds of checking accounts Regular has a low starting rate and low interest rate, Interest has a high starting rate and hight interest rate.
If you wish to transfer ownership of a check from yourself to another person, would you use a blank, a special or a restrictive endorsement? Explain Special- On the back of the check you would write: Pay to the order of…. and sign under it.
Which endorsement would you use to limit the use of your payroll check to being deposited in your bank account? Restrictive.
What is the purpose of check stubs or a check register? To keep track of what you have vs. what the bank has. You could have transactions that haven’t gone through yet.
A form that accompanies a deposit and lists the items deposited-Currency, coins, or checks. Deposit slips
Written evidence that you received payment or that you transferred your right of receiving payment to someone else. Endorsement
A separate form on which the depositor keeps a record of deposits and checks. Check Register
A card, kept by a bank, that shows the signatures of all individuals authorized to draw checks against the account. Signature Card
A bank account that is used by two or more people. Joint account
An endorsement that limits the use of a check to the purpose given in the endorsement Restrictive endorsement
A fee a bank charges for handling a checking account Service charge
An endorsement including the name of the person to whom the check has been transferred. Special Endorsement
An endorsement consisting of only the endorser’s name Blank endorsement
What are the three parties involved with a check? Drawer, Payee, drawee
Under what conditions might you stop payment on a check? If you addressed it to the wrong person, or if you don’t have enough money in the account.
What is the difference between a certified check and a cashier’s check? A certified check is the bank verifying that someone is good for their check. A cashier’s check is the bank paying the amount out of their own account/
Give an example of an electronic funds transfer. paying bills, paying someone back, any online purchases, debit cards.
The owner of the account and the person who signs the check. Drawer/payor
A form designed for the traveler to use in making payments. Traveler’s checks
A check dated later than the date on which it is written. postdate
The person to whom the check is written. Payee
The bank or other financial institution in which the account is held. drawee
The form instructing a bank not to pay a certain check. Stop payment order
A check that a bank draws on its own in-house funds. Cashier check.
Writing a check for more money than is in one’s account. Overdraw
A personal check for which a bank has guaranteed payment. Certified check.
A form of payment that orders the issuing agency to pay the amount printed on the form to another party. Money Order
Checks that have not been deducted from the bank-statement balance. Outstanding checks
A statement showing how the checkbook balance and the bank statement were brought into agreement. Bank reconciliation
A report sent by the bank to a depositor showing the status of his or her account. Bank statement

Leave a Reply

Your email address will not be published. Required fields are marked *