Terminology
Specialized computer used by bank customers to handle their money (get cash, make deposits, check balances).
Automatic Teller Machine (ATM)
Endorsement that would allow you to cash a check written to you
Blank
What is one reason that you should keep your money in a bank?
safety, security, cost, convenience
A check written for more than you have in your account
Overdraft
Many banks manage investments on behalf of customers; when they do this the money or other property that is turned over for the bank to manage is said to be held in .
TRUST
What is service charge?
Is a fee for using service the bank provides (atm, monthly, etc.)
There are two longer numbers listen on a bottom of a check. What are they?
Account and Routing Number
What is a Certificate of Deposit?
(Name the benefits for consumer and bank)
Higher interest rates than savings accounts
Must keep money in the account for a certain period of time (term) or you face a penalty (3 month, 6 month, 9 month, one year, 3 years, 5 years are common)
Longer the term - the better interest rate you get.
Which federal agency helps to regulate banks and other financial institutions?
Federal Deposit Insurance Corporation (FDIC)
What are two services that banks offer?
checking accounts, savings accounts, ATMs, online banking, money orders, money transfers, debit cards, loans
What reports the status of a bank account?
bank statement
A person to whom a check is written
Payee or Recipient
What is the document created to show how your own record of your checking account and the bank's record of your account were brought into agreement?
bank reconciliation
What is written evidence that a person received payment or transferred the right to receive payment to someone else?
Endorsement
What is TikTok worth (dollar amount)?
50 Billion!
A check that has been written but not yet deducted from the person's bank account.
Outstanding Check
What do you need to put in the bottom right corner for each check you write?
Your signature
An automatic deposit of a paycheck without having to take a physical check to the bank.
Direct Deposit
A check that has gone through the financial institution's processing center and is listed on your monthly statement.
Cleared Check
Allison currently has a balance of $2,300 in her checking account. She deposits a $425.33 paycheck, a $20 check from SHS, and a personal check for $550 into her checking account. She wants to receive $200 in cash. How much will she have in her account after the transaction? (NO PHONES)
$3095.33
A system that transfers cash by electronic communication rather than by paper documents.
Electronic Funds Transfer (EFT)
Go up to the board and demonstrate a Restrictive Endorsement for a check to Kim Kardashian (deposit)
Complete the reconciliation
Deposits not shown: $225
Outstanding Payments: $500
Bank Ending Balance: $400.30
$125.30
checking account that requires customers to keep a certain minimum amount for a specified time period to avoid fees.
Minimum Balance Account
How many currencies (what countries use as $) are there in the world?
180!!!! (197 countries)