Q&A Hero

Banking

Q: Explain the Uniform Commercial Code (UCC) rules for a postdated check.
Q: What did the Uniform Commercial Code (UCC) largely eliminate?
Q: What technology enabled Check 21? Describe how this technology achieves costs savings.
Q: What is GoDirect and why is it important?
Q: What is EFT? Discuss two common forms of EFT. What are the advantages of EFT?
Q: What is float? Name three specific ways it can be caused. What effect does float have on the money supply?
Q: Name and define the four primary types of endorsement. Which is the most commonly used?
Q: What is a draft? When is a draft typically used?
Q: In banking, who is the holder in due course?
Q: Define biometrics and provide two examples of biometrics.
Q: Why do banks encourage the use of cash cards?
Q: Define the term elements of negotiability and list the six elements.
Q: What is a promissory note?
Q: What three things are shown by a checks identification numbers?
Q: This morning Clarissa had a balance in her checking account of $1765.98. She wrote three checks: one to the baker for $74.68, one to the florist for $54.39, and one to her mother for $500. She also took her $750 paycheck to the bank and deposited half of it into her account; the other half she took as cash. What is her account balance at the end of the day?
Q: Mrs. Rodriguez had $1,306.35 in her bank account on December 1. On December 3, she deposited her paycheck of $1,500.00. On December 4, she wrote four checks in the following amounts: $35.65, $204.55, $216.76, and $23.42. She made an ATM withdrawal of $50 on December 5. What is her account balance the morning of December 6?
Q: This morning Terran had a balance in his checking account of $208.68. During the day he wrote two checks: one to his friend George for $23.00 and one to the comic book shop for $13.75. What is his account balance at the end of the day?
Q: A(n) ____________________ check is a check that is dated later than the date on which it is actually written.
Q: Online systems called _________________________ allow consumers to pay each other directly for a product.
Q: ____________________ cards have embedded microchips and use embedded logic to change and store values and record transactions.
Q: A(n) ____________________ card allows a consumer to make purchases, but the account must be paid in full at the end of the month.
Q: When the same funds are counted in two depository banks, the funds are called ____________________.
Q: A(n) ____________________ endorsement transfers a check to another specified party.
Q: A short-term note or draft issued by a corporation or government is called ____________________ paper.
Q: A bill of ____________________ is a negotiable and unconditional written order addressed by one party to another.
Q: A(n) ____________________ instrument is payable to whoever holds it.
Q: A written order or promise to pay a sum of money is called a(n) ____________________ instrument.
Q: Marisol has written a $500 check to Stephen, but she has only $300 in her account and it is returned unpaid to Stephen. Marisol has written a a. floating check. b. promissory note. c. postdated check. d. bounced check.
Q: The 9-digit number printed on a check that identifies the bank that holds the checking account and is responsible for payment is called the a. transit number. b. account number. c. check number. d. NSF number.
Q: Which of the following directly transfers money from a persons account to the account of a retailer? a. charge card b. credit card c. debit card d. cash card
Q: Which of the following largely eliminated the wide variation of legal regulation from the countrys payments system? a. Federal Reserve Act of 1913 b. Uniform Commercial Code of 1958 c. National Banking Act of 1864 d. Expedited Funds Availability Act of 1987
Q: Which of the following is an example of a restrictive endorsement? a. For Deposit Only b. the signature of the holder c. Pay to the Order of Tevin Washington d. Pay to the Order of Jill Davies, without recourse
Q: Which of the following endorsements is the least secure? a. qualified endorsement b. full endorsement c. restrictive endorsement d. blank endorsement
Q: The term negotiation, as it applies to a negotiable instrument, applies to a. the ability of the holder to obtain its value. b. the conditions of the instrument. c. the terms of the instrument. d. all of the above.
Q: Which of the following is NOT an element of negotiability? a. must contain a signature b. must be written c. must be payable on demand d. must state the amount to be paid
Q: The person who signs a draft is the a. drawee. b. drawer. c. payee. d. bearer.
Q: Which of the following features of a check indicates who is to receive the funds? a. the bearer b. the signature c. the payee d. the memo
Q: Under some circumstances, it is legal to write a postdated check. a. True b. False
Q: Transit numbers are not issued to financial institutions that hold accounts at a Federal Reserve Bank. a. True b. False
Q: You must pay off your credit card account in full at the end of every month. a. True b. False
Q: The Federal Reserve clears about 90 percent of the checks written in the U.S. a. True b. False
Q: It is illegal for a bank to make different check-cashing rules for customers and noncustomers. a. True b. False
Q: A full endorsement limits both the transferability and the further negotiability of a check. a. True b. False
Q: A check cannot be negotiated until it has been endorsed. a. True b. False
Q: A check must be written on paper in order to be legal. a. True b. False
Q: Check use in the United States is beginning to decline. a. True b. False
Q: The most common form of negotiable instrument is a promissory note. a. True b. False
Q: Name three things a bank must do to meet the requirements of Federal Reserve Regulation CC.
Q: Describe how the Federal Reserve can put more money into the economy through its open market operations.
Q: Explain the difference between APR and APY.
Q: Compare and contrast savings accounts and money market deposit accounts.
Q: Describe the benefits of an express checking account. What are some disadvantages?
Q: What are disclosure statements?
Q: In general, what determines the money supply?
Q: What is the basic formula for calculating simple interest?
Q: What is a certificate of deposit?
Q: How do the total funds in transaction accounts affect the money supply?
Q: What is a demand deposit?
Q: Calculate the simple interest earned on a savings account in six months that begins with a deposit of $5,000 and pays 6 percent interest.
Q: Keris savings account pays simple interest at a rate of 4.5 percent. After nine months, the account had earned $202.50 in interest. Find the principal.
Q: Augies savings account pays simple interest. He began with a deposit of $2,000; at the end of one year, he had earned $80 in interest. Find the interest rate on the account.
Q: Calculate the simple interest earned on a savings account in nine months that begins with a deposit of $500 and pays 3 percent interest.
Q: Theo wrote 132 checks last year. How many checks did he write every month, on average?
Q: Natashas checking account charges a basic monthly fee of $5. It allows her to write ten checks each month for free; it charges her $2 for every additional check she writes. The account also charges Natasha $1 each time she uses an ATM machine. What total fees did Natasha pay in April if she wrote 17 checks and used the ATM machine six times?
Q: A(n) ____________________ checking account has two or more owners, each of whom has equal and independent access to it.
Q: Consumers who perpetually move their funds among various accounts to obtain the highest interest rates at any point in time are called ___________________.
Q: Banks make and receive deposits to each other in ____________________ transactions.
Q: ____________________ interest adds interest to the principal and pays interest on the new total.
Q: The beginning amount used to calculate interest is called ____________________.
Q: A(n) ____________________ certificate is equivalent to a certificate of deposit, except it is offered by a credit union rather than a bank.
Q: The date on which a certificate of deposit is paid is called the ____________________ date.
Q: A(n) ____________________ savings account provides a ledger of activity that a teller updates when a customer makes deposits or withdrawals.
Q: A(n) ____________________ savings account provides a monthly or quarterly report detailing all account activity.
Q: All deposits to cover transactions that make automatic withdrawals or transfers to pay bills without writing checks are called ____________________ deposits.
Q: ____________________ checking accounts offer a few simple services for minimal cost.
Q: This Federal Reserve regulation requires banks to maintain adequate reserves for the funds they have on deposit. a. Regulation C b. Regulation CC c. Regulation D d. Regulation DD
Q: A check that is dated six months or more before it is presented for payment or deposit is called a(n) a. stale check. b. postdated check. c. bounced check. d. overdraft check.
Q: Which of the following governing documents list interest rates in effect at the time for various types of accounts? a. disclosure statements b. account rules c. fee schedules d. deposit rate schedules
Q: Which of the following statements about reserve requirements is true? a. Reserve requirements apply to the M1 and M2 money supply. b. Reserve requirements are the most important factor in bank lending. c. Reserve requirements do not change very often. d. If reserve requirements are low, banks must keep back more money and therefore have less to lend.
Q: For the purposes of computing interest compounded daily, a year is generally considered to be a. 336 days. b. 360 days. c. 365 days. d. 366 days.
1 2 3 … 494

Subjects

Accounting Anthropology Archaeology Art History Banking Biology & Life Science Business Business Communication Business Development Business Ethics Business Law Chemistry Communication Computer Science Counseling Criminal Law Curriculum & Instruction Design Earth Science Economic Education Engineering Finance History & Theory Humanities Human Resource International Business Investments & Securities Journalism Law Management Marketing Medicine Medicine & Health Science Nursing Philosophy Physic Psychology Real Estate Science Social Science Sociology Special Education Speech Visual Arts