Checking and Banking

A demand deposit account on which checks are drawn.

• A. savings account

• B. checking account

• C. CD

• D. money market account

• Both C and D

Writing a check for a major purchase is safer than than carrying a large amount of cash to the store.

• True

• False

An agency of the federal government that insures bank deposits up to $250,000 is the

• FAA

• FDIC

• FIDC

• Fed

Writing a check for a major purchase

• A. is safer than paying for it with cash

• B. will give you an additional paper trail of the transaction

• C. would be similar to paying for it with a credit card

• Both A and B

• All of the above

A document that provides an official signature that the bank can compare the one on a check is the

• check register

• deposit slip

• signature card

• bank draft

A tool used to track checking account transactions is a

• deposit slip

• debit card

• checkbook register

• certified check

Money added to a checking account is called a

• withdrawal

• deposit

• endorsement

• drawee

Which of the following is the best way to keep track of your check balance?

• A. reconciling your bank statement each month

• B. solely relying on checking your balance online

• C. checking your balance by calling the bank daily

• D. checking your balance at an ATM when you make a deposit

• Both C and D

The bank from which funds are drawn is called the

• payee

• drawee

• drawer

• payer

The person or company you are directing the Bank to pay with your check is the

• payee

• drawee

• payer

• drawer