Personal Finance Banking Exam

Ace your banking knowledge! Learn key terms like overdraft, debit cards, and reconciliation.

Match up the financial product to the description Overdraft Spending more money than you actually have in your bank account. Debit card A card that lets you spend money from your checking account. Cancelled check A service the bank offers to STOP a check from being cashed after you have written it and given it to someone . Mobile Banking Banking through devices such as phones, tablets, pads, and use an app. Demand Deposit Fancy word for checking account. Match the type of accounts to their definitions. Savings account Money you want to save goes here. Checking account Account used frequently and has features like; checks, ATM, debit card Money Market Investment tool that has a minimum required deposit; has a higher interest rate than a CD. Certificate of Deposit Investment that must remain in the account (typically 6 months to 5 years). Very low interest rate given on money. What is a Reconciliation? Certificate of Deposit Where we compare our records from the check register with the bank. Stop payment When we get interest on an investment What is a Floating Check? a check that is written by the bank on my behalf a check that is used by foreigners a check that is always over $10,000 a check that is written for an amount larger than what you have in your account NSF stands for non-sufficient funds. True False Where we store important papers, jewelry or items of value at the bank Certificate of Deposit Safe deposit box Coffee can MMA Some of the differences between Commercial banks and Credit unions is... For profit vs not for profit One has a membership and the other does not One is owned by its members and the other is not All of the above This is what the bank gives us once a month and shows every transaction that has taken place with our checking account. It is usually mailed to our home address. Deposit slip Statement Reconciliation Debit card The Payee is the person writing the check. True False What does EFT stand for? Electronic Funds Transfer Electronic Floatation Device Electric Fundamental Division The routing number represents the bank information and identification. True False What is a the purpose of a Voided Check? To write a check for money that we don't have. Sometimes needed to set up Direct Deposit or automatic payments. To make the check unusable and not legal and valid Both B and C This can be purchased at places like: Kroger, gas stations, Wal-mart and CVS. It works like a check and is very inexpensive. It is very safe and the money is guaranteed once it's printed. Money order CD Cash MMA