Everfi More Flashcards
(58 cards)
retail bank
usually a physical bank;
online bank
offers customers just about every service traditionally available through a local branch; even accepts deposits (online or via mail) and provides an online bill payment system
credit union
not-for-profit organizations that exist to serve their members rather than to maximize corporate profits; accept deposits, make loans, and provide a wide array of other financial services; focus on providing a safe place to save and borrow at reasonable rates; may not offer the same level of technology/innovation as retail banks
federal reserve
oversees nation’s system of money and credit; prints money, controls how much is available in the economy, adjust long term interest rates, keeps prices stable, promotes high employment; NOT part of government - independent organization with some government oversight
FDIC Insurance
Federal Insurance Department Corporation protects the bank deposits of customers against loss up to $250,000 per account per customer
interest
in terms of savings, how much the bank will pay you to have use of your money
liquidity
the ease with which an asset can be converted into cash
reconciling an account
balancing your transaction register each month with the balance shown on the bank statement
parts of the federal reserve
board of governors, 12 regional reserve banks, federal open market committee (FOMC)
board of governors
insures banks behave responsibly, superviseS 12 reserve banks, helps decide monetary policy
12 regional reserve banks
keep eye on banks in their region, provide financial services to banks, collect data and research the economy
federal open market committee (FOMC)
decides monetary policy,
bank teller
job at a bank; handles daily account transactions
branch manager
job at a bank; manages all personnel (employees) at a specific bank
customer service representative (CSR)
job at a bank; helps customers with questions about products, creates new accounts
loan officer
job at a bank; advises, evaluates, and signs off on loans to individuals and businesses
required balance
a certain amount of money you must have in some bank accounts at any given time to avoid being charged a fee
auto-pay
a service offered by banks where account holder can schedule payments to be made automatically on a specific date for a specific amount (very useful to make payments which are mostly and consistent (insurance premiums, mortgage payments, rent, etc.)
direct deposit
an automatic, electronic deposit of a paycheck into a bank account without having to take a physical check to the bank
auto-save options
a service offered by banks where account holder can schedule a specific amount of money to be transferred to a savings account or other investment on a specific date each month
NCUA Insurance
National Credit Union Administration insures up to $250,000 per person per account at a credit union; similar to FDIC insurance provided at banks
checking account
a bank account which allows you to write checks and use debt cards for purchases and ATM withdrawals; liquid, good for frequent transactions; must be good record-keeper to avoid NSF fees
savings account
a bank account which allows you to save money and earn some interest; checking access is limited, minimum balance may be required
money market accounts
a bank account that offers higher interest rates than standard savings rates, but with greater restrictions, higher minimum balance
