Book Opener

MathematicsWhen you open a checkingaccount, there are oftenseveral fees involved.You might have to pay amonthly service charge,a per check charge, ora per transaction fee.You probably will alsopurchase your checksfrom the bank.Research ActivityContact at least twobanks, and find out howmuch it costs to dobusiness at those banks.Compare the costsbetween banks. If youbased your decision onlyon cost, which bank wouldyou choose to open yourchecking account?You are guilty of a crime if you knowingly offer a forged check,even if you did not personally commit the act of forgery. When an offerordeliberately submits a forged instrument to another, the resulting crimeis called uttering .If one of your checks is forged, you must notify your bank within areasonable time. Failure to give timely notice relieves the bank of liability.Although you are granted a “reasonable” amount of time to notifyyour bank of one forged check, you must notify the bank within 14 daysafter receiving your statement if you discover multiple forged checks.Stopping Payment of a Check You may order your bank to stoppayment on a check that has not yet been paid by the bank. If the bankpays the check anyway, it is liable for any loss you suffer as a result. Anoral stop-payment order is binding on the bank for 14 calendar days,unless the order is confirmed in writing within that period. A writtenorder is effective for six months, unless it is renewed in writing. If youstop payment on a check given in payment of an amount actually owed,you still owe the amount of the debt. Also, in many situations you cannotavoid liability on a check by stopping payment on it if it has been transferredto a holder in due course. A holder in due course is one who takesthe instrument for value, in good faith, and without notice that anythingis wrong with it.Reviewing What You Learned1. How is a checking account opened?2. Describe the proper way to write a check.3. Summarize the process of balancing yourcheckbook.Critical Thinking ActivityBanking Fees Why do you think banks chargea fee to process an order to stop payment?Legal Skills in ActionCalculating Costs You deposit a $100 checkfrom your friend Ted into your checkingaccount and then write a $46.18 check to payfor groceries. Four days later, you receive anotice from the bank that Ted’s check was badand your account was debited $25 for theunpaid deposit. Because the funds from yourdeposit did not become available, your checkwas returned to the grocer unpaid. Your accountis debited another $25 for the unpaid check.The next day you receive notice from yourgrocer that you must pay a fee of $25 for thereturned check and replace it with a bank checkor money order. You pay 75 cents for the moneyorder. Calculate how much you really spent topurchase the $46.18 worth of groceries.528 Unit 5: Using Your Purchasing Power