Checking Accounts
What is a check?
What is another name for Saving accounts?
Time accounts
What is a line of credit?
A pre-approved amount of credit that customers can access on an as-needed basis.
What is an Electronic Funds Transfer (EFT) System?
An EFT system refers to the electronic transfer of funds between different accounts or financial institutions. EFT systems include ATMs, ACHs, POS terminals, and ECC.
What is a currency exchange?
Converting one currency into another to facilitate international transactions
What is a NOW account?
NOW stands for negotiable order of withdrawal and it is an interest-paying checking account.
A safe place to store money and earn conservative interest is called
A savings account
Short term business loans must be paid within
One year or less
What services are provided by financial institutions?
Financial institutions provide a range of services including checking accounts, NOW accounts, savings accounts, certificates of deposit, loans, credit cards, investment services, money transfers, foreign exchange services, financial planning, and wealth management.
This type of card electronically subtracts the amount of your purchase directly from your bank account.
Debit card
Where and why do firms and individuals deposit money?
They deposit their money into checking accounts (or demand deposits) so, they can write checks to pay for purchases.
Short-term business loans must be paid within?
One year or less
Revolving Credit Agreement
What are the advantages of online banking?
The advantages of online banking include convenience, time-saving, cost-effectiveness, enhanced account management, and increased security.
How do credit cards differ from debit cards?
A credit card allows you to be charged through your line of credit which you can repay at a later date, giving you more time to pay. A debit card subtracts the amount you purchased from your bank directly.
What is a main characteristic of a checking account?
All checking accounts are very liquid and they can be accessed through checks, ATMs, electronic debits, and other methods
These accounts have penalties for early withdrawal
Certificates of Deposit (CDs)
Enlargement of buildings and retail facilities, mergers and acquisitions, and substitute equipment or product development.
What are some popular methods of paying for import and export transactions?
Some popular methods of paying for import and export transactions include letters of credit, banker's acceptance, and currency exchange.
What are more used credit or debit cards?
Credit cards
how does a checking account differ from other accounts
It allows many withdrawals and unlimited deposits which limit the number of times you can withdraw and deposit.
This saving account has more stability and liquidity
Time account and Saving accounts
Real estate or property that depends on the outcome of one's ability to pay a loan
Collateral
What are some traditional services provided by financial institutions?
Some traditional services provided by financial institutions include checking accounts, NOW accounts, savings accounts, passbook savings accounts, certificates of deposit, short and long-term loans, lines of credit, revolving credit agreements, collateral, and credit cards.
What are some advantages of mobile banking?
It offers the same advantages as online banking but makes it easier and more convenient to access.