Question

1. overdraft fees occur when a transaction exceeds the account balance.
2. a debit adds money to your account.
3. a voided check can still be cashed.
4. an atm allows you to make deposits, withdrawals, and check balances.
5. a direct - deposit eliminates the need to physically deposit your paycheck.
6. a cancelled check is one that has been voided before being issued.
7. a post - dated check is written with a future date.
8. you must always endorse a check before depositing it.
9. the balance on a bank statement always reflects outstanding checks.

matching (3 points each)
match the term in column a with its correct definition in column b.
column a

1. checkbook
2. credit
3. outstanding deposit
4. endorse
5. check register

column b
a. record of check numbers, dates, and amounts used for tracking payments
b. an amount of money added to your account
c. a deposit made but not yet shown in the bank statement
d. to sign the back of a check to approve its deposit or cashing
e. a booklet containing checks and deposit slips

Explanation:

1. Overdraft fees occur when a transaction amount is more than the available account balance, so this statement is True.
2. A credit adds money to an account, not a debit. A debit subtracts money. So this statement is False.
3. A voided check is marked as non - negotiable and cannot be cashed. So this statement is False.
4. ATMs allow for deposits, withdrawals, and balance checks. So this statement is True.
5. Direct - deposit electronically transfers paychecks, eliminating the need for physical deposit. So this statement is True.
6. A cancelled check is one that has been voided after being issued, not before. So this statement is False.
7. A post - dated check has a future date on it. So this statement is True.
8. You must endorse a check before depositing it to transfer the right of payment. So this statement is True.
9. The balance on a bank statement may not always reflect outstanding checks until they clear. So this statement is False.

For the matching part:

1. A checkbook is a booklet containing checks and deposit slips. So 21 - E.
2. Credit is an amount of money added to your account. So 22 - B.
3. An outstanding deposit is a deposit made but not yet shown in the bank statement. So 23 - C.
4. To endorse is to sign the back of a check to approve its deposit or cashing. So 24 - D.
5. A check register is a record of check numbers, dates, and amounts used for tracking payments. So 25 - A.

Answer:

1. True
2. False
3. False
4. True
5. True
6. False
7. True
8. True
9. False
10. E. A booklet containing checks and deposit slips
11. B. An amount of money added to your account
12. C. A deposit made but not yet shown in the bank statement
13. D. To sign the back of a check to approve its deposit or cashing
14. A. Record of check numbers, dates, and amounts used for tracking payments