Checking Accounts Vocabulary

What is the primary purpose of a checking account?

• To save money for long-term goals

• To earn interest on deposits

• To manage daily financial transactions

• To invest in stocks

Which of the following is a common feature of checking accounts?

• High interest rates

• Limited withdrawals

• Overdraft protection

• Fixed deposit terms

What does the term 'overdraft' mean in the context of checking accounts?

• A fee charged for account maintenance

• A withdrawal exceeding the account balance

• A deposit made into the account

• A transfer between accounts

Which of the following is NOT typically associated with checking accounts?

• Debit card access

• Check writing

• High interest earnings

• Direct deposit

What is a 'bounced check'?

• A check that is cashed immediately

• A check that is returned due to insufficient funds

• A check that is deposited into a savings account

• A check that is written for cash

Which term refers to the process of matching your checkbook register with your bank statement?

• Reconciliation

• Endorsement

• Withdrawal

• Deposit

What is the function of a debit card linked to a checking account?

• To provide a line of credit

• To allow cash withdrawals and purchases

• To earn rewards points

• To invest in mutual funds

Which of the following is a benefit of using online banking with a checking account?

• Higher interest rates

• 24/7 account access

• Limited transaction history

• Increased check writing fees

What does 'NSF' stand for in banking terms?

• No Savings Found

• Non-Sufficient Funds

• New Savings Feature

• Net Savings Fund

Which of the following actions can help avoid overdraft fees?

• Writing more checks

• Keeping track of account balance

• Ignoring bank statements

• Using only credit cards