Deck 23: Banking Services and Procedures

Question 1

Notice about a NSF check should be sent to the patient by registered mail.

Answer 1

False

Question 2

Cashier's checks sometimes are known as officer's or treasurer's checks.

Answer 2

True

Question 3

The three most common types of bank accounts are checking accounts, savings accounts, and money market savings accounts.

Answer 3

True

Question 4

To maximize money, bills should be paid immediately when they arrive.

Question 5

The person who writes the check is called a drawee.

Question 6

If a mistake is made on a check, the maker should draw one line through the error and make the correction.

Question 7

Money orders are best when a person is traveling.

Question 8

Travelers' checks are most often used by transitory patients on vacation who become ill and need to see a local physician.

Question 9

Banking by mail is never done now that the use of the Internet is so prevalent.

Question 10

Blank endorsements make checks payable to the bearer.

Question 11

A routine NSF check can be filed with the district attorney's office without ever contacting the maker.

Question 12

Bank statements should be checked immediately upon receipt and scanned carefully for errors.

Question 13

A limited check does not have a time restriction on when it can be cashed.

Question 14

M-banking involves doing business using a wireless device, such as a cell phone.

Question 15

Most patients who write checks to pay their account with their physician have no intention of fraud.

Question 16

There is no difference between a certified check and a cashier's check.

Question 17

Stop-payment orders are frequently used in day-to-day transactions at the physician's office.

Question 18

One disadvantage of e-banking is learning the software.

Question 19

The maker of the check is the person to whom it is written.

Question 20

A stop-payment order can protect the payer from loss as a result of stolen, lost, or incorrectly drawn checks.

Question 21

When should checks from patients and other sources be deposited?

A)At the same time bills are paid
B)As soon as possible after they are received
C)When the bank statement is reconciled each month
D)At the end of every week

Question 22

Online banking often is called:

A)m-banking
B)e-banking
C)quick banking
D)none of the above

Question 23

Any individual, corporation, or legal party who signs a check or any type of negotiable instrument is considered the:

A)maker
B)payer
C)drawer
D)payee

Question 24

Why is accepting third-party checks from patients usually poor policy?

A)This type of check is illegal.
B)Third-party checks are not negotiable.
C)The check likely will bounce.
D)The reliability of the maker cannot be verified.

Question 25

Which of the following is not one of the four types of endorsements?

A)Blank
B)Quality
C)Restrictive
D)Special

Question 26

If a bank cashes a check that is later returned for insufficient funds, whom does it charge to recover the amount lost?

A)The check's maker
B)The person who received the money
C)The person to whom the check was written
D)The person who last endorsed the check

Question 27

What is the first thing the medical assistant should do when a check is returned unpaid by the bank?

A)Contact the person who wrote the check.
B)File it with the district attorney's office.
C)Send a letter refusing to see the person as a patient until the matter is resolved.
D)Write off the account.

Question 28

If a pegboard check-writing system is not used, what is the first thing that must be done when writing a check?

A)Enter the payee's name on the check.
B)Date the check correctly.
C)Fill in the check stub.
D)Write the exact amount to be paid on the check.

Question 29

What is the most common reason the ending balances in checkbooks and bank statements usually do not match?

A)Transactions are made between the preparation and receipt of the statement.
B)Errors are commonly made when checks and deposits are recorded in the checkbook.
C)Banks often make mistakes in the preparation of statements.
D)Patients have written nonsufficient funds checks that do not appear on the statement.

Question 30

Which of the following is not an example of a negotiable instrument?

A)Cashier's check
B)Money order
C)Credit card
D)Personal check

Question 31

What is represented by the number in the "balance forward" box on the check stub?

A)The amount of the check to be written
B)The amount in the account before the check is written
C)The amount remaining in the account after the check has been written
D)The total deposits made since the last check was written

Question 32

The stamp "For deposit only" is a restrictive endorsement.

Question 33

The two balances that must be reconciled are the patient's account balance and the physician's checkbook balance.

Question 34

The name of the first endorser of the check indicates the last person who received the money.

Question 35

A check drawn on the bank's own account and signed by an authorized bank official is called a:

A)bank draft
B)voucher check
C)cashier's check
D)certified check

Question 36

Currency and checks should be deposited once a week.

Question 37

Which type of bank account would be best for maintaining funds that are used for paying seasonal expenses, such as insurance premiums?

A)Regular savings account
B)Money market savings account
C)Interest-bearing checking account that requires a high minimum balance
D)Regular checking account

Question 38

Which type of bonding covers all employees in a facility?

A)Position-schedule bonding
B)Personal bonding
C)Blanket-position bonding
D)General bonding

Question 39

In which situation should the bank be asked to issue a stop-payment order on a check written in payment for a medical supply order?

A)The check was accidentally written for more than was owed.
B)The payee has not received payment after a reasonable period has elapsed.
C)The vendor to whom the check was written refuses to deliver the order.
D)All of the above are correct.

Question 40

If the medical assistant makes a mistake when writing a check, the best practice is to:

A)write "Void" on it and file it with the canceled checks
B)destroy it immediately
C)cross out the error and write in the correction
D)erase the error and write in the correction

Question 41

A capital sum of money due as a debt or used as a fund for which interest is either charged or paid is called:

A)disbursement
B)reconciliation
C)principal
D)holder

Question 42

The crime of falsely and fraudulently making or altering a document is called:

A)forgery
B)misdemeanor
C)disbursement
D)none of the above

Question 43

The first step in writing a check is to:

A)figure the balance after the check amount is deducted
B)fill out the information on the check stub
C)mark the invoice that is being paid and include the check number
D)mail the check

Question 44

The first thing that should be done when a NSF check is received at the physician's office is to:

A)add the check back to the patient's statement balance
B)call the patient to let the person know that the check was returned
C)send a certified letter to the patient to demand payment for the check
D)add the NSF fee to the patient's statement balance

Question 45

Which of the following would make an instrument nonnegotiable?

A)It is written and signed by a maker.
B)It contains a promise or order to pay a sum of money.
C)It is payable on demand or at a fixed future date.
D)It is payable to the order of payer.

Question 46

An insured account requiring a minimum balance that draws interest at a higher percentage than a regular savings account is called a ______ account.

A)money market savings
B)individual retirement
C)checking
D)business savings

Question 47

The country is divided into how many Federal Reserve districts?

A)8
B)10
C)12
D)14

Question 48

A plan in which payments are transferred, usually electronically, by a paying agency directly to the account of a recipient is called a:

A)disbursement
B)direct deposit
C)customer-oriented banking
D)endorsement banking

Question 49

If the medical assistant is allowed to sign checks on the physician's business account, he or she must sign a document at the bank called a:

A)confidentiality statement
B)bond
C)signature card
D)noncompete statement

Question 50

The medical assistant should be __________ rather than reactive when it comes to problem patients.

Question 51

What are some of the advantages of Internet banking?

A)There is no waiting in line.
B)Banking can be done from home.
C)Account information is available 24 hours a day.
D)All of the above are advantages.

Question 52

Something legally transferable to another party is considered:

A)principal
B)negotiable
C)convenient
D)legally binding

Question 53

The person authorized to act as the agent when executing a power of attorney is called an attorney:

A)at law
B)of power
C)ad litem
D)in fact

Question 54

A signature on the back of a check whereby the rights of the check are transferred to another party is called a(n) __________.

Question 55

Often fees charged by banks to business accounts depend on the services __________.

Question 56

When an account is opened at a bank, the depositor will be required to complete a __________ card.

Question 57

The name of the last endorser of the check shows who last __________ the money.

Question 58

The part of the ABA number following the dash on top in the fraction designates:

A)cities in which Federal Reserve banks are located
B)the number issued to each bank for identification purposes
C)the Federal Reserve district in which the bank is located
D)the amount of money in the bank account

Question 59

A check made payable to "Cash" is most commonly used in the physician's office to:

A)pay employees
B)provide the physician with funds for travel expenses
C)pay for medical supplies
D)replenish petty cash

Question 60

__________ bonds reimburse the physician for any monetary loss caused by employees.

Question 61

The __________ discloses any errors that may exist in the checkbook or, on rare occasions, the bank statement.

Question 62

Today's checks include $56, $73, $89, $23, $20, and $82.What is the total in checks for the daily deposit?

Question 63

Networks of banks that exchange checks with each other are called __________.

Question 64

A series of laws adopted by most states that regulate the fields of sales of goods and other entities is the __________.

Question 65

The physician uses a debit card to pay for purchases totaling $46, $50.02, $802.98, and $73.What is the checkbook balance after the debit card purchases if the account balance is $17,394.83 before the transactions?

Question 66

An instrument that is legally transferable to another party is said to be __________.

Question 67

__________ bonding covers specific individuals.

Question 68

A(n) __________ endorsement is used in preparing checks for deposit to the physician's checking account.

Question 69

The __________ status is what distinguishes an IRA from an ordinary savings account.

Question 70

A patient writes a check in the amount of $56 toward her account of $569.What is her balance after the payment?

Question 71

The deposits in cash today are $657 and the checks total $8,343.What is the total deposit?

Question 72

For individuals to be __________, a personal background investigation normally is necessary.

Question 73

A capital sum of money due as a debt or used as a fund for which interest is either charged or paid is called the __________.

Question 74

A person who writes a check is sometimes called the __________.

Question 75

Banks ask to be notified within a reasonable time if the customer finds a(n) __________ on his or her bank statement.

Question 76

A person presenting a check for payment might be called the __________.

Question 77

__________ is done over the Internet.

Question 78

The physician uses the debit card for $782.19 to pay for medical supplies, $56 for office supplies, and $76 to stock the employee break room refrigerator.If the balance in the checkbook is $32,830.43, what is the balance after the debit card activity?

Question 79

A(n) __________ check has a detachable form that is used to itemize or specify the purpose for which the check is drawn.

Question 80

Debit card transactions to be added to the deposit include those for $45, $561, and $887.What is the total of these debits?