Banking Terminology Quiz

Study Notes

Banking Terms and Concepts

Automatic Teller Machine (ATM): A computerized device enabling customers to perform bank transactions, including cash withdrawals and balance inquiries, without human assistance.
Bank Reconciliation: A document that aligns the individual's record of their checking account with the bank’s record, ensuring both balances are in agreement.
Bank Statement: A summary report that details the status of an individual's bank account over a specific period, including transactions and balances.
Cashier's Check: A secure payment option drawn from the bank’s own funds, combining the check amount with a service fee charged by the bank.
Certified Check: A personal check guaranteed by a bank, ensuring that the amount is reserved for the specified payee.
Check Register: A record book, similar in size to a checkbook, used for tracking all account activities including deposits and withdrawals.
Commercial Bank: The most prevalent type of banking organization, offering services such as checking accounts, savings accounts, personal and business loans, and various financial services.
Credit Union: A member-owned, not-for-profit cooperative financial institution that provides banking services to its members.
Debit Card: A bank-issued card that allows electronic access to funds in a customer's checking account, often used for ATM and point-of-sale transactions.
Direct Deposit: An electronic method of transferring funds directly into a bank account, making the money immediately available for use.
Electronic Funds Transfer (EFT): A technology-driven process enabling various banking activities, including ATM withdrawals, point-of-sale transactions, direct deposits, and automatic bill payments.
Endorsement: Written confirmation that a payment has been received or the right to receive payment has been transferred to another party.
Federal Deposit Insurance Corporation (FDIC): A United States government corporation that insures deposits made in member banks to protect depositors in case of bank failures.

Description

Test your knowledge of banking terminology with this quiz! Learn the definitions of key terms such as ATM, bank reconciliation, bank statement, cashier's check, and certified check. Improve your understanding of banking concepts and terminology.