18 Questions
What is the primary reason businesses maintain bank accounts?
To safeguard their assets
What type of account is used for daily transactions?
Checking Account
What is required from clients when opening a bank account?
An information sheet and one or two valid identification cards
Why are payments to suppliers made through checks?
For security reasons
What is the purpose of a signature card in banking?
To serve as a reference for every transaction
What is the main advantage of not keeping too much cash in business premises?
It reduces the risk of asset loss
What type of document is used to log transactions in some savings accounts?
Passbook
What happens when the balance of a savings account falls below the required minimum amount?
Bank charges are imposed at the end of the month.
What is the primary purpose of a savings account?
To provide an incentive for the depositor to save money.
What is required from all signatories in a joint account?
A signature card for the bank's records.
Can a foreigner open a bank account in the Philippines?
Yes, but only for certain types of accounts.
What is typically offered alongside a passbook in some savings accounts?
An ATM Card.
What is the primary purpose of a bank statement in a checking account?
To provide a record of deposits and withdrawals
What is the main characteristic of a time deposit?
It has a fixed interest rate and maturity date
What is the primary means of withdrawal from a checking account?
Issuing a check
What is the benefit of a checking account for businesses?
It provides a clear record of deposits and withdrawals
What is a characteristic of a checking account's interest rate compared to a savings account?
It is lower
What is typically included with a bank statement in a checking account?
A list of all checks issued during the month
Learn about the characteristics of a checking account, including withdrawal methods, interest rates, and deposit/withdrawal limits. Compare and contrast with savings accounts to understand the differences between these two types of bank accounts.
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