Chapter 3: Money and Banking

Question 1

Personal Banking

Answer 1

Refers to the services provided by banks to help manage the person’s personal finances.

Question 2

Current Account

Answer 2

Allows you to lodge and withdraw money at any time. This account is used for day-to-day transactions.

Question 3

Current Account Services:

Answer 3

ATM, Pay Path, Bank Draft, Cheque, Debit Card, Credit Transfer, Overdraft, Bank Statement.

Question 4

Automated Teller Machine/ ATM:

Answer 4

Machine used for withdrawing money from current account. Correct card and PIN must be entered.

Question 5

ATM Services:

Answer 5

Withdraw money (€600), In bank can lodge cheque and money, pay bills, check balance, order bank statement, phone credit.

Question 6

Debit Card:

Answer 6

When correct PIN entered, allows money to be transferred electronically from the customer’s bank account.

Question 7

Credit Card:

Answer 7

Like debit card except you pay LATER!

Question 8

Cheque

Answer 8

Written instruction to a bank to pay a stated sum of money from your bank account to a named account.

Question 9

Bank Draft

Answer 9

Written document that tells the bank to pay a stated sum of money to a named person. Written by the bank and guaranteed not to bounce as you pay the money in advance.

Question 10

Credit Transfer (CT)

Answer 10

Allows you to transfer money from your bank account to another person’s bank account.
Complete giro or do it online.

Question 11

Paypath

Answer 11

Electronic way of transferring an employee’s wages from employer’s account to employee’s account.
Advantages!

Question 12

Overdraft

Answer 12

Permission to withdraw for more than balance in current account up to a certain limit.
Advantages, disadvantages!

Question 13

Pay Pal

Answer 13

Safe way to pay for goods online without disclosing credit card or bank details. Money from your account to seller’s account but no exposure of details.

Question 14

SO

Answer 14

Planned automatic payment to pay a regular fixed amount of money from your bank account to a stated person’s bank account on specific dates/ fixed time.

Question 15

DD

Answer 15

Planned automatic payment to pay a variable amount of money from your bank account to a stated person’s bank account at any time.

Question 16

Bank Statement

Answer 16

Document issued by bank showing you money flowing in/ out of current account. Paper or electronic.

Question 17

What will I be asked for when opening a current account?

Answer 17

Proof of identity.
Proof of address.
Employment status.
Sample signature.

Question 18

How could I lodge money?

Answer 18

Electronic lodgement.

Lodgement slip in bank to give to cashier.

Question 19

How could I withdraw money?

Answer 19

ATM. 
Debit Card for purchases.
Cash Back. 
Credit Transfer to pay to other account. 
DD&SO.

Question 20

Online and mobile banking

Answer 20

Allows people to access their current account at any time using a computer or mobile device with Internet access.
You can do….. with it!

Question 21

Foreign Exchange

Answer 21

Banks converting euro currency to other currencies like sterling, dollar and yen.

Question 22

Exchange Rate

Answer 22

Rate at which money of one country can be changed for the money of another country.

Question 23

Euro 2 Foreign Currency:

Foreign Currency 2 Euro:

Answer 23

x by sell rate.

divide by buy rate.