Vocab
_________ allows customers to withdraw cash and make other financial transactions electronically at different locations.
What is an ATM
______ are financial institutions whose primary specialty is making loans for the purchase of a house or real estate.
a. brokerage firms
b. banks
c. credit unions
d. mortgage companies
What is d
this account provides a safe place for your money; allows you to withdraw money as often as needed without a fee
What is a checking account
Many financial institutions issue their customers credit and debit cards. How are debit cards different from credit cards?
a. Higher interest rates
b. Debit cards are only used for online
c. Only customers with superior credit can be issued debit cards
d. they deduct a purchase directly from checking account
What is d
Consumers have many options for financial services beyond traditional banks. Which is NOT considered a financial institution?
a. Insurance Companies
b. Credit Unions
c. Internal Revenue Services
d. Mortgage companies
What is C. IRS
Banks and _________ are licensed by the state or by the federal government and provide the same kind of services for customers, such as checking, savings, loans, credit cards and online banking.
What is credit unions
Name 5 services that most bank institutions provide to their customers.
What are Checking accounts, savings account, automatic deposit, debit cards, atm, online banking, safe deposit box, money transfers, overdraft protections, credit cards and loans
this account helps you save and earn a small amount of interest. Includes a fee after an allotted amount of withdraws
what is a savings account
Many banks and credit unions offer ______, sometimes for free or for a fee. This provides an automatic loan from the institution to cover checks or transfers when their are insufficient funds in an account.
What is overdraft protection
this allows you to buy now and pay later; interest rates can be high
what is a credit card
The deposit of wages or other income directly into a customer's bank
What is automatic deposit
Some consumers desire to use the services of investment banks or brokerage firms. The primary goal of these financial institutions is to _______
a. buy and sell stocks or bonds
b. maintain checking and savings
c. provide low-interest loans for home or car purchases
d. issue credit cards for customers with poor credit
What is a
an account that is based on buying and selling stocks, corporate bonds, and government bonds
what is an investment account
The process of moving money from one account to another account
what is money transfer
The expansion of online banking services is one of the most common technological advances in the financial industry. Which is NOT an advantage of online banking?
a. Customers can review their accounts and track their spending
b. Funds can be electronically transferred from one account to another
c. Bills can be paid by automatic withdrawls
d. Banks will reconcile their customer's checking accounts annually
What is D
A protected location in a secure bank vault where individuals can store records or valuables for a small fee
What is a safety deposit box
The Federal Deposit Insurance Corporation is an independent agency created by Congress to maintain public confidence in the nation's financial system. The FDIC ________
a. makes interest-free loans to qualified companies
b. repays money lost in stocks and bonds
c. insures deposits for consumer protection
d. offers low-cost housing to families under poverty level
What is c
Unbanked people generally pay for things in cash or
_________ or _________
What is money orders or prepaid debit cards
a company that guarantees compensation for specific forms of loss, damage, injury or death
what is an insurance company
Why is it important for consumers to fully understand the fees and services offered before choosing a financial institution?
a. banks do not charge fees
b. fees to offset the cost of services can vary
c. only credit unions provide online banking
d. interest rates for loans are very similar from one institution to another
What is b
A state or federal chartered not-for-profit financial cooperative that provides financial services to member-owners who meet requirements
What is a Credit Union
What is the difference between a bank and a credit union?
What is Credit union- non profit, owned by the people who use the services
According to the FDIC the main reasons people are unbanked is ________ and __________
what is cost and distrust
Individuals/companies who buy and sell stocks for investors
What is Stock Brokers/Stock Brokerage Firm
__________ is a term that refers to families who have checking or savings accounts but often rely on alternative financial services such as money orders and payday loans, as opposed to traditional loans and credit cards, to manage their finances.
What is underbanked