Chapter 5 The Banking System

Slide 2 What Is the Purpose of a Checking Account? 5-1 Checking Accounts A checking account is a demand deposit account on which checks are drawn. A check is a written order to a bank to pay a person or business.

Slide 3 Checkbook Register 5-1 Checking Accounts

Slide 4 Making Withdrawals and Deposits 5-1 Checking Accounts A withdrawal involves taking money from your account. o Writing checks o Using debit and ATM cards A deposit of money can be made to your account. o Endorsing checks o Direct deposit

Slide 5 How Do You Reconcile a Bank Statement? 5-1 Checking Accounts Bank reconciliation is the process of adjusting the checkbook register and bank statement so they agree. The bank statement lists checks, withdrawals, deposits, service charges, interest, and fees. Consider deposits in transit, outstanding checks, and transposition errors.

Slide 6 Building Communications Skills Reading Comprehension Read slowly. Look at the structure of what you are reading. o Example: topic sentences and conclusion sentences Think about the purpose of a paragraph and how it relates to the topic. Take notes or highlight key points. Read passages more than once. 5-1 Checking Accounts