Chapter 4

Organizations

100

is an organization that provides services related to money.

 financial institution

200

is the process of transferring money from one individual or organization to another.

Financial exchange

300

is anything of value that is accepted in return for goods or services.

Money

400

is a financial institution that receives, lends, exchanges, and safeguards money.

bank

500

is the license authorizing a bank to operate

charter

Banks

100

is a business in which the primary function is to receive, transfer, and lend money to individuals, businesses, and governments.

commercial bank

200

is a type of commercial bank that is locally owned and operated.

community bank

300

is a financial institution that is owned by its depositors.

mutual savings bank

400

is a financial institution that provides banking services exclusively online.

Internet bank

500

is a financial institution that offers most of the services commercial banks do.

savings and loan association

Accounts

100

is a nonprofit financial cooperative owned by and operated for the benefit of its members.

credit union

200

 is a written order for the bank to pay a specific amount to the person to whom the check is written

check

300

is a bank account that allows the owner to make deposits, write checks, and withdraw money.

checking account

400

is a card that allows the holder to electronically access funds in an account at an ATM or to pay for goods and services from a business.

debit card

500

is a plastic card that allows the holder to make credit purchases up to an authorized amount.

credit card

Corporations

100

is a bank account used by depositors to accumulate money for future use.

savings account

200

is a check written for an amount greater than the balance of the account.

overdraft

300

is a request for a financial institution to refuse to honor a check written, if the check has not already cleared the account and been paid.

stop-payment order

400

is the movement of money over an online network from one financial institution to another.

electronic funds transfer

500

is an independent agency created by the federal government to protect bank customers by insuring their deposits.

Federal Deposit Insurance Corporation

Busineses

100

is a record of account deposits, withdrawals, checks, fees, and interest.

check register

200

is a signature on the back of a check.

endorsement

300

is the person, business, or organization to whom the check is written.

payee

400

is a record of checks, ATM transactions, deposits, and charges on an account, as shown in Figure 4-9. Some banks still send statements through the mail.

bank statement

500

is the process of comparing the check register with the bank statement.

bank reconciliation