Basic Procedures for Opening a Checking Account | CTFA Exam Preparation

Common Mistakes to Avoid When Opening a Checking Account

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Question

After opening the checking account, follow these basic procedures Except:

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Explanations

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A. B. C. D.

D

The correct answer is (D) Sign the check in a different way than on the signature card.

When opening a checking account, there are several basic procedures to follow when writing checks. These include:

A. Always writing checks in ink: This is important to prevent the check from being altered or changed after it has been written.

B. Including the name of the person being paid, the date, and the amount of the check: This information is necessary for the check to be processed and for accurate record-keeping.

C. Noting the check's purpose on the check: This is optional, but can be helpful for personal record-keeping and budgeting.

However, it is incorrect to sign the check in a different way than on the signature card. The signature on the check must match the signature on file with the bank, otherwise, the check may be rejected or deemed fraudulent. It is important to keep the signature consistent to avoid any issues with check processing.

In summary, all of the procedures listed in the answer choices are important to follow when writing checks, except for signing the check in a different way than on the signature card.