Vocabulary
Money
Anything of value that is accepted in return for goods or services.
True or False
The contents of a safe-deposit box are insured by the FDIC.
False
The contents are not insured by the FDIC, but some banks provide insurance if the contents are damaged or lost.
What color ink should checks be written in?
Black ink
What type of bank is a community bank?
A community bank is a type of commercial bank that is locally owned and operated.
Who produces paper money?
Paper money is produced by the US Treasury.
Credit Card
Card that allows the holder to make credit purchases up to an authorized amount.
Owners of businesses can borrow money for many reasons, such as to expand operations, purchase inventory, develop new products, and buy new equipment.
When you receive your bank statement what should you do?
You should reconcile it (compare items to make sure they are in agreement with each other).
Commercial banks are owned by investors called
Stockholders or Shareholders
Who produces coins?
Coins are produced by the United States Mint
Stop-payment Order
Request for a financial institution to refuse to honor a check written, if the check has not already cleared the account and been paid.
List examples of banking services.
Examples of banking services are safe-deposit boxes, loans, account services, and various special payment services.
How do you deposit money into your checking account?
You fill out a deposit slip as a record of the transaction.
List advantages of Internet banks (Virtual Banks).
Internet banks have minimal operating expenses, higher interest rates on savings accounts, higher yield. Another advantage of virtual banks is that most of their services are free of service charges and many offer free checking and low minimum account balances.
List factors to consider when selecting a financial institution.
Important factors to consider are location, interest rate, and safety.
Savings and Loan Association (S & L)
Financial institution that offers most of the services commercial banks do.
List examples of payment services offered by financial institutions.
Examples of payment services offered by financial institutions include cashier’s checks, certified checks, money orders, and traveler’s checks.
What's included in a account summary?
The beginning balance, total amount of checks cleared and other payments made, total amount of deposits and credits, and ending balance.
Only 17 states, mostly in the northeast.
What does the National Credit Union Administration (NCUA) do?
They grant federal charters and supervises credit unions across the country.
Federal Deposit Insurance Corporation (FDIC)
Independent agency created by the federal government to protect bank customers by insuring their deposits.
What does the 'Consumer Overdraft Protection Fair Practices Act of 2009' require consumers to do?
It requires consumers to sign an agreement with their depository institutions to cover and charge for overdrafts.
What is required to open a checking account?
Some banks require a parent or guardian to be listed on an account for an individual under 18 years old. Personal information, such as a Social Security number, birth date, and address is needed. The bank will also request a personal ID to confirm identity and a signature card will need to be signed.
Who governs mutual savings banks?
A board of trustees
What does a complete check have?
A complete check has the date, name of the payee, amount of the check in numbers and words, reason for writing check (on memo line), and signature of the drawer.