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What is one primary role of banks?
To store and safeguard deposits
What type of account typically offers the most immediate access to funds?
Checking Account
What is ATM?
An electronic banking outlet for basic bank transactions
What is a deposit slip used for?
To outline the source and amounts of money being deposited
Which account type typically has the highest interest rate among the listed options?
A. CHECKING ACCOUNT
B.SAVINGS ACCOUNT
C. MONEY MARKET (MMA)
D. CERTIFICATE Deposit
Certificate of deposit (DC)
What is the primary way banks make money?
Charging interest on loans
What is a check?
A dated and signed form of payment instructing a bank to pay specific amount .
What is liquidity?
The ease and speed by which an asset can be converted into cash
What information is found at the bottom left corner of a check?
the routing number
Why might a bank offer higher interest rates on deposits during periods of economic growth?
Due to higher demand for loans
What does FDIC insurance protect against?
Bank Failures
What information is required for a direct to work?
Routing number and account number
What fee is charged when an account holder spends more than is available in their account?
Overdraft fee
Which field on a check indicates the individual or organization to whom the check is paid?
The" Pay to the order" field
What is a common limitation of both savings acccounts and Money Market Accounts (MMA)?
Limited number of withdrawls per month
What type of account is most likely to earn interest?
Savings account
What is the function of online bill pay?
Allows users to pay and manage their bills electronically
What is required to open a checking account?
Government-issued photo ID, Social Security, proof of address, intial deposit
Which type of payment method is most comparable to physical cash when lost ?
Blank endorsed check
What is the primary function of the Federal Reserve's Discount Rate ?
To set the interest rate for banks borrowing short-term funds
What is interest?
The cost ( or income) of borrowing ( from loaning ) money
How does the FDIC protect checking accounts?
Insures deposits up to 250,000$ per depositor per insured bank
What type of endorsement is used if a check should be deposited and not cashed?
Restrictive endorsement
Which type of deposit account is primarliy designed for frequent transactions ?
Checking Account
What is the primary purpose of a bank statement?
To outline all account transaction is a given month