Banking Flashcards
(24 cards)
Interest
Is a fee paid for the opportunity to use someone’s else’s money for a period of time
Commercial banks
Are financial institutions owned by shareholders and operated for their own profit
Mutual savings banks
Are stats charted financial institutions operated by trustees for the benefit of depositors
Saving and Loans
Are financial institutions that originally specialized in providing funds to home buyers
Credit union
A non profit financial institution owned by its members
Internet banking
Is a financial institution that operates exclusively over the internet using online banking
FDIC(Federal Deposit Insurance Corporation)
is a United States government corporation providing deposit insurance to depositors in US banks
EFT
The movement of funds by electronic means
ATM
a machine that you use to get cash from using your credit card
PIN(Personal Identification number)
Is a secret code that protects the security of your accounts, allowing you alone to access them
Debit card
a card (usually plastic) that enables the holder to withdraw money or to have the cost of purchases charged directly to the holder’s bank account
Payee
Can take the check to his or her own bank and cash or deposit it.
Overdraft
A check written for more money than your account contains
Endorsement
A signature on the back of the check entitles the payee to either receive payment or transfer it to someone else
Reconcile
verifying that information on a bank statement and a checkbook are in agreement
Certified check
Is a check from a personal checking account that has been stamped by the bank to guarantee that there are sufficient funds in the account to cover it.
Cashier’s check
Is a check issued and guaranteed by a bank.
Money order
Is a purchased certificate used to pay a specified amount to particular payee.
Travelers check
Are documents that function as cash, but can replaced if lost or stolen
Prepaid cards
Cards sold in specified dollar amounts that can be used to purchase products or services. Looks like a credit but is preloaded with cash.
Outstanding transaction
Ones that were received by the bank after the closing date of your statement
Cancelled check
Checks that are paid by the bank, deducted from the depositor’s account, and returned with the bank statement.
Money transfer service
generally refers to one of the following cashless modes of payment or payment systems
Wire Transfer
An electronic communication that moves funds from an account in one bank to an account in a different bank instantly.
