Checks
You need a government issued photo, SS#, a prior address and an initial deposit to do this.
What is open a checking account?
Charging interest on loans.
What is the primary way banks make money?
Allows users to manage their bills electronically.
What is online bill pay?
An account type that has the highest interest rates in the deposit type accounts.
What is a Certificate of Deposit (CD)?
The speed at which an asset can be converted into cash.
What is Liquidity?
The information found on the bottom left corner of a check.
What is a routing number?
When a bank charges the account holder when they spend more than they have.
What is an overdraft fee?
It outlines the sources and amounts of the money being deposited.
What is a deposit slip?
The reason savings accounts are considered to be less accessible than checking accounts.
What is that they limit the number of withdrawals?
The two fields necessary to process direct deposits, wire transfers and ACH payments.
What are the routing number and the account number?
The field on a check that has the name of the individual or organization the check should be paid to.
What is the Pay To The Order Of field?
A type of deposit account that is mainly designed to do frequent transactions.
What is a checking account?
The main reason for a bank statement.
What is to outline all the transactions in a given month?
How the ending balance is calculated on a statement.
What is Beginning Balance + Deposits -Withdrawals
What NSF stands for.
What is Not Sufficient Funds?
The term used when a check has been processed and cleared by the issuing bank.
What is cleared checking?
The term used for the difference between what a bank earns in interest from loans minus the interest they pay depositors.
What is Net Interest Margin?
The main reason how a bank reconciliation helps an account holder.
What is to ensure bank records match their own transactions ?
The NIM when a bank charges 9% on a loan and only offers 2% interest on a savings account.
What is 7%?
The cost of borrowing money or the income from lending money.
What is interesting?
A type of endorsement used when a check should be deposited and not cashed.
What is restrictive endorsement?
The primary purpose for the Federal Reserve’s Discount Rate.
What is to set interest rates for banks that borrow short term loans from them?
A big reason why a bank statement might not match a customer’s own transaction records.
What are outstanding checks?
The purpose of online banking and online banking statements.
What is it provides a real time look at transactions and reduces the need for monthly statements?
Why a bank offers higher interest rates on deposits when there is a period of economic growth.
What is when there is a higher demand for loans?