Banking
This institution holds deposits and may offer loans, payment services, and savings products.
What is a bank?
This account is designed for frequent deposits and everyday payments.
What is a checking account?
This account is commonly used to set aside money for future needs or goals.
What is a savings account?
This person or organization is named to receive the money from a check
Who is the payee?
This document lists account activity and balances for a specific period.
What is a bank statement?
This is the amount a financial institution charges for a service, such as maintaining an account.
What is a bank fee?
This record helps account holders track checks, debit purchases, deposits, and the current balance.
What is a check register or transaction log?
This percentage-based measure describes the cost paid to borrow money or the return earned on savings over time.
What is an interest rate?
This line on a check states the amount in words.
This process compares a bank statement with personal transaction records to find differences.
What is reconciling an account?
This protection helps customers recover eligible deposits if an insured bank fails, up to legal limits.
What is deposit insurance, such as FDIC insurance?
A checking account has $820. A $145 payment and a $60 deposit post. What is the new balance?
What is $735?
An account earns simple interest on its original deposit. What is the interest on $1,000 at 3% for one year?
What is $30?
Before a check can be deposited or cashed, the recipient typically signs this area on the back.
What is the endorsement?
What does NSF stand for in banking terms?
What are Non-Sufficient Funds?
This banking service moves money electronically from one account to another, often for recurring paychecks.
What is direct deposit?
An account’s balance is $40, but a $75 purchase is attempted. What could happen if the transaction is approved?
What is an overdraft?
What is one of the main benefits of a savings account compared to a checking account?
What are higher interest rates?
A check is written for $86.40, but the written amount says “sixty-eight dollars and forty cents.” What should the recipient do before depositing it?
What is contact the writer to resolve the mismatch and request a corrected check?
A deposit appears in personal records but not on the statement because it was made near the statement’s closing date. What is this called?
What is a deposit in transit?
What is the term for the difference between the interest banks earn on their loans and the interest banks pay to their depositors?
What is Net Interest Margin?
Name two features to compare when selecting a checking account
Examples include monthly fees, minimum balance rules, ATM access, overdraft policies, and transaction limits
Why might someone keep an emergency fund in a savings account instead of investing all of it?
Savings are generally accessible for unexpected expenses, while investments can fluctuate in value or take time to sell.
Why should a person record a check in their transaction log when writing it, rather than waiting for it to clear?
To keep an accurate available-balance estimate and reduce the risk of overspending or overdrawing the account.
A statement balance is $1,250. There is a $200 deposit in transit and an outstanding check for $75. What is the adjusted balance?
What is $1,375?