Lesson 1 - Intro. to Banking
ATM stands for what?
Automated teller machine
What is Identity Theft?
When someone achieves financial gain by using another persons information to unlawfully assume the identity of the other person.
What is a Depositor?
A person who puts money into a bank.
What are Depository Intermediaries?
A financial institution that gets its funds from the public to finance their business.
What is a Commercial Bank?
Provide services such as checking and savings accounts, credit cards, investment services, etc.
What makes a Consumer "Creditworthy"?
Has a good credit rating, sufficient collateral for loans, and an ongoing income source sufficient to make on time loan payments.
What is an Asset?
Anything of Value
What are non-depository Intermediaries?
Financial institutions that do not take or hold deposits.
What is a Retail Bank?
Help customers save money, acquire loans, and invest.
Why would someone need a loan?
To make a large purchase that that they currently do not have sufficient funds for.
What is a Liability?
A cash obligation or something you owe.
What is a Wholesale Bank?
A banks that specializes in business banking.
What is a Central Bank?
Manage, regulate, and protect both the money supply and the banks themselves. Issue currency, and serve as the governments banker.
What gives money value?
government guarantees
What is Equity?
Total assets - total liability's
What is a Thrift Institution?
Mutual saving banks and savings and loan associations.
What is the definition of "Medium of Exchange"?
An agreed upon system for measuring the value of goods and services
What ways you can safeguard your money?
Record Keeping, Identification, Enforcement, Transfer Security, Sound Business Pracitces, and Examination of records.
What is Deregulation?
Loosening of government control.
What is a Credit Union?
A not-for-profit financial institution that exist to benefit the members.