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15 Cards in this Set
- Front
- Back
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What is a checking account and what does it do? |
Checking accounts are demand deposit accounts on which checks are drawn. It provides a safe place to keep money and allow users easy access to the money in the account. |
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Why should be use checks? |
Because checks are the most accepted form of payment for most bills. It is also safer to write a check for a large amount of money rather than just using cash. And checks can be used to show proof of purchase. |
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Why are checking accounts safe? |
Because they are insured by the FDIC, a federal agency. |
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What is an advantage of having a checking account? |
Funds are easier to access. |
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What do you call it when you take money from an account, and to an account. |
Deposits are money added to an account. Withdrawals are money removed from and account. |
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What is a check? |
Checks are a written order to a bank to pay a stated amount to a person or business. |
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What is a checkbook register? |
A tool used to track checking account transactions. |
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What is a postdated check? |
A check written with a date that will occur in the future. It is not recommended to write postdated checks. |
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What is a debit card? |
A card used to withdraw money from your checking account. |
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What is an electronic funds transfer? |
It is a computer-based system to move money from the drawer's account to the payee's account. |
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What is bank reconciliation? |
It is the process of adjusting the checkbook register and bank statement balances so that they agree. |
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What is check fraud? |
It is when someone alters a check by changing its amount to obtain more money from another person's account. |
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What is Forgery? |
It is the act of signing another person's name on a check. |
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What is endorsement? |
A signature, with or without instructions, written on the back of the check. |
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What is a direct deposit? |
When wages or benefits are automatically deposited into a bank account electronically. |
