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Questions and Answers
What is the purpose of a bank reconciliation document?
What is the purpose of a bank reconciliation document?
- To guarantee payment for a personal check
- To provide a report on the status of a bank account
- To bring the customer's and bank's account balances into agreement (correct)
- To show the bank's record of a customer's account
What is the main difference between a cashier's check and a certified check?
What is the main difference between a cashier's check and a certified check?
- The amount of the service fee
- The type of payment guarantee
- The source of funds for the check (correct)
- The type of account it is drawn from
What is the primary function of a commercial bank?
What is the primary function of a commercial bank?
- To provide checking and savings accounts, make loans, and offer other services (correct)
- To offer insurance products
- To facilitate foreign exchange transactions
- To provide investment services
What is the main benefit of direct deposit?
What is the main benefit of direct deposit?
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What is the purpose of an endorsement on a check?
What is the purpose of an endorsement on a check?
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What is the primary function of the Federal Deposit Insurance Corporation?
What is the primary function of the Federal Deposit Insurance Corporation?
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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.
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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.
