Financial Literacy 2.01
Which depository institution is owned by its members?
What is a credit union?
A ______ bank is the most common type of depository institution.
What is a commercial bank?
Computer and phone networks transfer money electronically rather than through an exchange of cash, checks, or other types of paper documents
What is
E-Banking
Electronic Banking
A plastic card, which looks like a credit card and is linked to bank accounts
What is a debit card?
Designed for teens and college students who want a convenient way to manage their money.
What is a student checking account?
The percentage of a consumer's monthly gross income that goes toward paying debts.
What is Debt to income ratio ?
This helps business owners hold and manage money made within a company.
What is a business checking account?
List two things that a checking account allows you to do.
Deposit/ Withdraw Money
Deposit Checks
Use Debit Card
This organization provide insurance to credit unions.
What is the NCUA?
National Credit Union Administration
These are examples of:
Apple Pay
Google Pay
CashApp
What is mobile payments?
Electronic computer terminals used to make deposits, transfer between accounts or withdraw cash from a bank or credit union account
What is an ATM?
Any person who regularly collects debts owed to others.
What is a debt collector?
A loan you receive in a lump sum and then repay with set terms, in equal installments with a fixed interest rate.
What is an installment loan?
Is a loan that’s backed by some form of valuable property known as collateral.
What is a secured debt?
Name two types of savings tools.
Savings Account
Money Market Account
Certificate of Deposit
What is the dollar amount that the National Credit Union Administration (NCUA) and Federal Deposit Insurance Corporation (FDIC) protect?
What is $250,000?
This saving tool:
- Requires a large deposit
- Has larger interest than savings account
- Has limited # of withdrawals per month
What is a money market account?
When a consumer withdrawal from a bank account exceeds the available balance.
What is an overdraft?
Allows the check to only be deposited and can’t be cashed
What is a restrictive endorsement?
A debt that was not paid when due.
What is delinquency?
Someone who owes monies to another party.
What is debtor?
List three items on a check.
Name
Address
Memo
Dollar Amount
Account Number
Routing Number
List two reasons that a bank will charge you fees?
Overdrafting
Withdrawing money early from CD
Using out of network ATM
Bounced check
BONUS POINTS
BONUS POINTS
Name 3 benefits of E-Banking?
•24-hour access
•Fast
•No paper
•Convenient
•Worldwide access
•Use your phone as a digital wallet
A loan that isn’t tied to any collateral.
What is an unsecured debt?
Allows the check to be transferred to a second party.
What is a special endorsement?
If a checkbook, ATM, and/or debit card becomes lost or stolen, you should:
Contact your bank
Report loss to the police
The savings tool that earns you the most interest.
What is a certificate of deposit?
This saving tool
-Does not allow check writing privileges
-Keeps money insured
-May allow a debit card
What is a savings account?
This saving tool:
- Money must stay for a set amount of time (years)
-Earns more interest than savings account
-Pays interest on lump sum of money
- Penalty if money is withdrawn early
What is a certificate of deposit?
List 3 ways to practice safe banking?
–Do not write down pin where the card is kept
–Do not tell others your pin
–Shield the PIN with body at ATMs
–Do not give pin out over the phone or e-mail
–Change PIN if it is suspected someone else knows it
A type of debt that allows you to repeatedly borrow and repay money up to a set credit.
What is a revolving debt?
Used to track all financial transactions for a bank account, including deposits, withdrawals, and checks.
What is a checking account register ?
Anyone can cash or deposit the check after has been signed.
What is a blank endorsement?