Chapter 10

A debit card is also called an ATM card or check card and it takes money from your own bank account, as if writing a check.

• True

• False

If you make a mistake when writing a check, it's okay to throw it away and write a new one.

• True

• False

Answer explanation

You would need to shred it or write VOID on it.

When writing checks, you should sign your name in ink and sign it the same way it appears on the bank signature card.

• True

• False

Every week you should receive a statement of the bank's record of all your transactions, called a bank statement.

• True

• False

Answer explanation

every MONTH, not week

Whenever you write a check, you should record it in your check register.

• True

• False

A blank indorsement consists of a signature alone.

• True

• False

If words and figures (numbers) do not match, then figures(numbers) win out over the words.

• True

• False

Answer explanation

The WORDS win out

The signature on a check should match the signature card on file with the bank.

• True

• False

The types of negotiable instruments are:

• checks, bonds, notes, CD's

• Checks, notes, CD's, stocks

• checks, stocks, bonds, notes, CD's

The types of drafts are:

• Sight drafts

• Time drafts

• Letters of Credit

• All of these