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Questions and Answers
What are commercial banks often called due to their many services?
What are commercial banks often called due to their many services?
- Investment banks
- Savings banks
- Full-service banks (correct)
- Retail banks
In most commercial banks and savings banks, the money you deposit is safe because it is insured by the ________ for up to $250,000.
In most commercial banks and savings banks, the money you deposit is safe because it is insured by the ________ for up to $250,000.
FDIC
A _________ offers many of the same services provided by commercial banks.
A _________ offers many of the same services provided by commercial banks.
savings and loans association
A ________ differs from a commercial bank and a savings loan association in that its services are for its members only.
A ________ differs from a commercial bank and a savings loan association in that its services are for its members only.
Most credit unions are insured by the ____.
Most credit unions are insured by the ____.
An ________ authorizes your bank to electronically pay certain bills directly from your account each month.
An ________ authorizes your bank to electronically pay certain bills directly from your account each month.
An _____ can be used to withdraw money from your account when you are shopping in the mall.
An _____ can be used to withdraw money from your account when you are shopping in the mall.
In order to use an ATM, you must have a _______.
In order to use an ATM, you must have a _______.
You may pay for purchases in a store without cash, check, or credit cards by using a ________.
You may pay for purchases in a store without cash, check, or credit cards by using a ________.
______ checking works very well for people who use online banking, banking by phone, or ATMs to do all their banking.
______ checking works very well for people who use online banking, banking by phone, or ATMs to do all their banking.
A _______ is good to have if you want an interest-bearing account and can maintain the minimum balance.
A _______ is good to have if you want an interest-bearing account and can maintain the minimum balance.
An ________ checking account allows you to earn interest and write checks on the same account.
An ________ checking account allows you to earn interest and write checks on the same account.
When two or more people share a bank account, it's called a _____ account.
When two or more people share a bank account, it's called a _____ account.
A check with a ______ endorsement can be cashed by anyone who possesses it.
A check with a ______ endorsement can be cashed by anyone who possesses it.
For deposit only is a common _____ check endorsement.
For deposit only is a common _____ check endorsement.
A ________ is a record of the checks, deposits, and charges made to your account for a specific length of time.
A ________ is a record of the checks, deposits, and charges made to your account for a specific length of time.
If you're going to be traveling, ________ checks are convenient to use.
If you're going to be traveling, ________ checks are convenient to use.
If you're paying a large sum of money, a ________ check may be a more acceptable form of payment than a personal check.
If you're paying a large sum of money, a ________ check may be a more acceptable form of payment than a personal check.
A _______ check is a personal check with a bank's guarantee that the check will be paid.
A _______ check is a personal check with a bank's guarantee that the check will be paid.
A _______ is a type of check for a specified amount of money payable to the specified payee which may be purchased at numerous places.
A _______ is a type of check for a specified amount of money payable to the specified payee which may be purchased at numerous places.
_______ are small metal containers people rent to protect their valuables from fire and theft.
_______ are small metal containers people rent to protect their valuables from fire and theft.
A ______ savings account is a convenient form of savings, but it pays the lowest rate of interest.
A ______ savings account is a convenient form of savings, but it pays the lowest rate of interest.
With a ______, you deposit money for a set period of time and earn a set annual rate of interest.
With a ______, you deposit money for a set period of time and earn a set annual rate of interest.
Study Notes
Banking Institutions
- Commercial Banks: Full-service banks offering a wide range of financial services.
- Savings and Loan Associations: Similar services to commercial banks, primarily focused on housing and residential lending.
- Credit Unions: Member-only financial cooperatives providing services distinct from commercial banks and savings associations.
Insurance and Regulation
- FDIC: Insures deposits at commercial and savings banks up to $250,000, ensuring the safety of deposited funds.
- NCUA: Insures deposits in credit unions, safeguarding member contributions.
Transactions and Payment Methods
- Electronic Funds Transfer (EFT): Mechanism allowing automatic electronic bill payments from a bank account.
- Automated Teller Machine (ATM): Enables cash withdrawals and other transactions at various locations.
- Debit Card: Facilitates cashless purchases using linked bank accounts.
Account Types and Features
- Express Checking: Ideal for users relying on online banking, mobile banking, and ATMs for transactions.
- NOW Account: Interest-bearing checking account that requires maintaining a minimum balance.
- Interest-Bearing Checking: Allows earning interest while writing checks.
Accounts and Ownership
- Joint Account: Shared by two or more individuals.
- Blank Endorsement: Allows any holder of a check to cash it.
- Restrictive Endorsement: Limits a check to a specific purpose, commonly marked for deposit only.
Financial Documents
- Bank Statement: Summary of account transactions over a specified duration, including checks, deposits, and charges.
- Traveler's Check: Convenient, pre-printed checks used for travel, offering safety and ease.
- Cashier's Check: A secure payment method for large amounts, backed by the issuing bank.
Specialized Payment Instruments
- Certified Check: Personal check guaranteed by a bank, ensuring payment reliability.
- Money Order: Prepaid check that designates a specific payee and amount, purchasable at various locations.
Security and Savings
- Safe Deposit Box: Rentable, secured containers in banks for protecting valuable items from theft and fire.
- Regular Savings Account: Simple savings option with lower interest rate offerings.
- Certificate of Deposit (CD): Fixed-term deposit account providing a predetermined interest rate over a specified duration.
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Description
Test your knowledge of important banking and investment terms with these flashcards. Each card provides a word and its definition, helping you to understand key concepts in the financial world. Ideal for students and professionals looking to enhance their financial vocabulary.
