Checking Accounts Test

Name ________________________________ Period____________ Date _________________

Matching: Match the following terms on the right with the definitions on the left. Each question is worth 2 points. (16)

_____1. A common financial service used by many consumers. They can help to manage money and make paying bills more conveniently.

A. Reconciling

_____2. A legal document that functions like cash. B. Check

_____3. Used to withdraw cash or make deposits. C. Debit Card

_____4. Sign the back of this card in the authorized signature box.

D. Checking Account

_____5. Contains the account holder’s account number and allows money (cash or check) to be deposited into the correct account.

E. ATM

_____6. Debit cards require using this to access the account to perform transactions.

F. Check Register

_____7. All transactions including deposits, checks, debit card purchases, additional fees, and ATM use should be recorded here immediately after completion

G. Deposit Slip

_____8. Bank statements are compared to the check register when _______________ the account.

H. PIN

Multiple Choice: Choose the correct answer for each question. Each question is worth 2 points. (10)

9. People use a checking account for the following reasons except: a. Reduces the need to carry large amounts of cash b. Written record of expenses c. Convenience d. Earn large amounts of interest

10.Which of the following is not a check endorsement type? a. Full endorsementb. Blank endorsement c. Restrictive endorsement d. Special endorsement

11.What is a monthly statement?a. A report that lists each monetary transaction and the current

account balanceb. A slip that contains the account number and allows money

to be deposited into the correct accountc. A piece of paper pre‐printed with the account holder’s

information and is used to purchase itemsd. A plastic card that is connected to an individual’s bank

account that can be used to make purchases

12.What does it mean to reconcile an account?a. Pay outstanding transactions b. Deposit income and record withdraws c. Balance the checkbook register each month to the balance

shown on the statement d. Track Check 21 transactions

13. Which of the following is not true about debit cards?a. It is a plastic cardb. It requires a PINc. Money is directly withdrawn from the bank accountd. It allows overdrawing money from account

Application: Fill out the correct items by following the information provided. Each part is worth 1 point.

14. (33 points) You have a beginning balance of $250.00 You purchase food at Wendy’s on November 16, 2004 for $15.68

with check #621. Next, you receive check #1230 on November 17, 2004 for $46.78

from your dad and you deposit it into your account. Finally, you write check #622 to Dillard’s on November 18, 2004 for

the shoes you buy that cost $125.07. Please fill out the checks and the deposit slip completely and record

the information into the check register to indicate your remaining balance.

Identifying: Identify the listed parts of a check.Each blank is 1 point. (5)

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Word bank:-Check Number-Date-Pay to the Order Of Line-Checking Account Number-Amount Number-Amount Written Out-Memo Line-Signature Line-Account Holders Information