Chapter 8~Commercial Banks

Question 1

Savings/deposit account?

Answer 1

An account for customers who want to save money. Interest is paid each year on the amount saved

Question 2

Current account?

Answer 2

An account for customers who want to pay bills and other expenses on a regular basis

Question 3

DIRT?

Answer 3

Deposit interest retention tax. This is the interest paid on interest earned on savings

Question 4

ATM?

Answer 4

Automated teller machine

Question 5

Lodgement?

Answer 5

Putting money into your savings or current account

Question 6

Withdrawal?

Answer 6

Taking money from you savings or current account

E.g ~ by using withdrawal slip, ATM, cheque

Question 7

PIN?

Answer 7

Personal identification number

Question 8

24 hour banking?

Answer 8

Telephone and Internet banking which allows customers to carry out a range of banking services 24 hours a day, 365 days a year

Question 9

Night safe?

Answer 9

A metal drawer located in the wall of most bank branches. They are used by consumers who need to lodge large amounts of cash when the bank is closed. useful for pub owners, late night shops

Question 10

IBAN?

Answer 10

International bank account number. An internationally agreed means of identifying bank accounts internationally

Question 11

4 commercial banks in Ireland

Answer 11

1. AIB~Allied Irish banks
2. Bank of Ireland
3. Ulster bank
4. Permanent TSB

Question 12

2 advantages of a savings/deposit account

Answer 12

• receive interest on savings each year

* convenient way of saving money

Question 13

How does the DIRT system work?

Answer 13

1. The amount of DIRT payable on interest is calculated by the bank or financial institution
2. This is automatically deducted from the interest payable on each account before the interest is added to a persons account
3. The amount deducted is then sent to the tax office

Question 14

3 advantages of a current account

Answer 14

• customers can use a cheque or laser card to pay for goods and services, which is safer and more convenient than having to pay cash
• you can have your wages paid directly into you current account (paypath)
• costumers can apply for a bank overdraft

Question 15

3 differences between a current account and a deposit account

Answer 15

• no interest earned on current account, interest earned on deposit account
• overdraft facility with current account, No overdraft facility on deposit account
• cheque facility with current account, no cheque with deposit account

Question 16

4 Requirements when opening an account

Answer 16

1. Fill in application form
2. Proof of address by supplying a bill
3. Proof of identity by supplying passport
4. Sample of signature

Question 17

4 uses of an ATM card

Answer 17

• lodge/withdrawal money to account
• transfer money between accounts
• check their balance
• top up their mobile phone

Question 18

24 hour banking service (7)

Answer 18

1) transfer money between accounts
2) order a statement
3) pay a bill
4) check their balance
5) top up their mobile phone
6) apply for bank loan, overdraft, new credit card
7) order foreign currency

Question 19

Commercial bank?

Answer 19

A business that provides financial services to personal and business customers