18 Questions
Who is the drawer in a check?
The one writing the check and whose signature appears on it
What does the payee refer to in a check?
The one named on the check and entitled to payment
What is the drawee in a check?
The bank in which the account is maintained
What happens if there are erasures in a check according to the text?
The erasures should be signed by the drawer
What does a bank statement typically show?
Details of checks paid by the bank
What is considered a liability of the bank according to the text?
Individual/entity's bank account
What is a savings account primarily intended for?
Encouraging savings
Which of the following typically evidences a savings account?
Passbook
What do bank statements show to depositors?
Deposits and withdrawals made by the depositor
Which of the following is NOT a common feature of a savings account?
High credit limits
What is the primary purpose of a passbook related to a savings account?
Recording deposits and withdrawals
Which document is used to track personal deposits and withdrawals in a bank account?
Passbook
What type of account allows withdrawals through designated machines?
ATM account
Which document(s) are usually required to open a bank account?
Valid identification card and filled forms
What does a deposit slip do at a bank or credit union?
Identify the depositor and provide instructions to the financial institution
What is NOT a benefit of having an ATM account?
Ability to deposit checks remotely
What is the purpose of listing checks individually on a deposit slip?
To help the bank identify each check and its amount separately
Why is it important to have a paper trail for every transaction?
To provide a record of all financial activities for future reference
This quiz covers the parties involved in a check transaction including the drawer, payee, and drawee. It also addresses the protocol for dealing with erasures on a check to ensure it can be accepted by the bank.
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