The Banking System

A current account is . . .

• a bank account on which cheques can be drawn.

• a bank account on which cheques cannot be drawn.

• a bank account which does not pay interest.

• None of the above.

A deposit account is . . .

• a bank account which pays interest.

• a bank account on which cheques can be drawn.

• a bank account which does not pay interest.

• None of the above.

A cheque . . .

• is the form which must be completed when lodging money into a bank account.

• must always be 'crossed'.

• is an instruction to your bank to pay money out of your current account.

• None of the above.

Cheques are sometimes 'crossed' . . .

• so that they cannot be 'cashed' for a certain period of time.

• to prevent them from being lodged into a bank account.

• so as to avoid any person, other than the person to whom they are written, deriving any benefit from them.

• None of the above.

Endorsing a cheque means . . .

• making it void.

• exchanging it for cash at a bank.

• relinquishing your right to receive the amount of the cheque and passing that right on to someone else.

• None of the above.

A paying-in slip is . . .

• an once-off instruction to a bank to pay a specified amount from your current account.

• the form which must be completed when lodging money into a bank account.

• the same as a cheque.

• None of the above.

The 'drawer' of a cheque is . . .

• The bank in which the person writing the cheque has his/her account.

• The person to whom the cheque is written.

• The person who writes the cheque or on whose account the cheque is written.

• None of the above.

The payee of a cheque is . . .

• The bank in which the person writing the cheque has his I her account.

• The person to whom the cheque is written.

• The person who writes the cheque or on whose account the cheque is written.

• None of the above.

A bank overdraft . . .

• is an asset.

• can exist on either a deposit account or a current account.

• means that more money has been paid out of a bank current account than has been lodged into it.

• None of the above.