Banking Test Questions and Answers

Consumer Financial Protection Bureau -Answers- Government agency ensuring fair treatment from banks, lenders, and financial companies .Federal Trade Commission -Answers- Stops unfair or fraudulent business practices .Federal Reserve -Answers- Regulates banks, maintains payment systems for money transfer .Federal Deposit Insurance Corporation (FDIC) -Answers- Insures banks, requires them to keep your money safe .National Credit Union Administration (NCUA) -Answers- Insures credit unions, requires them to keep your money safe .Fraud or Identity Theft -Answers- Unauthorized use of your money or personal information .Missing Checkbook -Answers- Report immediately, generally not liable for fraudulent charges .Missing Debit Card (within 2 business days) -Answers- Account holder liable for $50 in fraudulent charges .Missing Debit Card (after 2 business days) -Answers- Account holder liable for up to $500 in fraudulent charges .Overdraft Protection -Answers- Prevents account balance from falling below $0, allows you to connect bank accounts to cover any overdrafts and avoid fees .Phishing -Answers- Scammers send fake emails to collect financial information .Skimming -Answers- Scammers use devices to steal debit card information .How to avoid being scammed -Answers- look out for suspicious emails with typos or senders you don't recognize, don't use card readers that look suspicious .Check Register -Answers- List of transactions for a certain bank account created and updated by account holder .Bank Statement -Answers- List of transactions for a certain bank account created and updated by banks .Parts of a check register -Answers- check number or payment code (DC for debit card), date and description of transaction, amount of transaction in the + or - column, running balance, T to check off when checks are deposited .Reconciling -Answers- Comparing check register and bank statement to ensure they match .Purpose of a check register -Answers- to check for any mistakes on check register or bank statement and to check for any fraudulent or unauthorized transactions .Check -Answers- pre-printed slip of paper used to withdraw money from a checking account .Cashed Check -Answers- Check turned into cash .Deposited Check -Answers- Check put into someone's bank account .Bounced Check -Answers- Check returned due to insufficient funds .Endorsement -Answers- When the receiver signs the back of a check .Routing Number -Answers- Number used to identify the account holder's bank .Account Number -Answers- Number used to identify the specific bank account .Check Number -Answers- Number used to identify each check .Pay to the Order of -Answers- The name of the person or business receiving the check .Memo -Answers- Description of what the check is paying for .Blank Endorsement -Answers- Receiver signs their name, anyone can cash or deposit the check .Restrictive Endorsement -Answers- Receiver signs their name, writes 'for deposit only,' and writes the account number .Special Endorsement -Answers- Receiver signs their name and writes 'pay to the order of (person's name)' .Parts of a check -Answers- account holder's info, bank's info, routing number, account number, check number .Debit Card -Answers- A card that automatically deducts money from a checking account .PIN -Answers- Personal identification number used to prevent fraud .Gift Card -Answers- A prepaid payment card for a specific amount .Pros of Debit Cards -Answers- Convenient, allows carrying less cash, records earnings and expenses .Cons of Debit Cards -Answers- Possibility of fraud, overdraft fee when spending more than in the account .Parts of a Debit Card -Answers- Card number, cardholder's name, expiration date, signature box, verification number, magnetic stripe or microchip .Card Number -Answers- 16-digit number that identifies the bank account linked to the card, not the same as the bank account number .Cardholder's Name -Answers- Name of the person to whom the debit card belongs .Expiration Date -Answers- Date when the debit card must be renewed or stopped using .Signature Box -Answers- Area on the debit card where the cardholder signs their name or writes 'see ID' .Verification Number -Answers- Three-digit code on the debit card used to prevent fraud .bank -Answers- privately-owned for-profit company that helps you manage your money