Managing a Bank AccountTracking Your Money

Test Review

What is the process of comparing personal bank account records to the bank’s records of that account balance in order to uncover

any possible discrepancies?

Reconcile

What is a computer terminal used to conduct business with a financial institution or purchase items

such as postage stamps or transportation tickets?

Automated Teller Machine

What is known as a cash machine?

Automated Teller Machine

What is money that is added to your checking account?

Deposit

What is a plastic card that provides access to electronic funds transfer (EFT) from an

automated teller machine (ATM)?

Debit Card

What card is used at a point-of-sale terminal?

Debit Card

True/FalseYou reconcile your bank statement to determine

if there are any discrepancies in your records.

True

True/FalseA debit card is the same as a credit card

False

True/FalseA debit card charges interest on all transactions.

False

A debit card is the same as a check – only in plastic form.

True

What is a written order directing a bank or credit union to pay a person or business a specific sum

of money?

Check

True/FalseYou should write the cents of the amount of the check in the

small space that starts with the dollar sign as a fraction.

True

True/FalseWhen using a debit card, it is important to remember to write down all transactions and add them to your account balance.

False

When using a debit card, it is important to remember to write down all transactions and

subtract them from your account.

True

What is the first set of numbers at the bottom of your check called?

Check Routing Numbers

What do the check routing numbers tell a computer?

Which bank the check is from

True/FalseThe primary purpose of a check or debit card is to replace

cash so the government has a record of your activities.

False

True/FalseThe primary purpose of a check or debit card is to make it easier for people to buy goods and services, pay bills, and make other

financial transactions.

True

True/FalseWriting a check for insufficient funds can be

easily avoided if you do not use an ATM

False

What is a check written for insufficient funds known as?

Hot Check

True/FalseWriting a check for insufficient funds can result in expensive fees, fines, even jail time if convicted

True

What is a legal document that must be filled in correctly to be honored by a bank or business?

Check

True/FalseWhen you receive your monthly bank statement, it is

recommended that you use it to reconcile your checking account.

True

What is a written document ordering a financial institution to transfer money from your account

to someone else

check

It does matter what date you write on the date line of a check because it is a legal document.

True

True/FalseAll you have to do is sign the check and it is considered a legal

document.

False

True/FalseA check must be filled out completely and

correctly be to considered a legal document.

True