Intro to Business Chapter 17 - Banking and Financial Services
Except for certain retirement accounts, the FDIC insures all accounts in the same name at each bank up to an amount of ____.
$100,000
The United States is divided into ____ Federal Reserve districts, with a central Federal Reserve bank in each district.
12
An endorsement that consists of only the endorser's name.
Blank endorsement
Refers to the paying of checks among different banks in different cities.
Clearing
This is the most common way for a bank to be organized.
Commercial bank
When you use this card, you are borrowing from the bank to pay later.
Credit card
When you use this card, you are using money in your bank account.
Debit card
____ ____ ____ (EFT) refers to the use of computers and other technology for banking activities.
Electronic Funds Transfer
A signature card is a written notice that tells the bank not to pay a certain check.
False
An interest-earning checking account is probably the best choice for people who write only a few checks each month.
False
Only you or the bank has the right to open your safe-deposit box.
False
State banks may not join the Federal Reserve System.
False
The federal government set up the ____ ____ ____ to supervise and regulate member banks and to help banks serve the public more efficiently.
Federal Reserve System
An endorsement that allows you to transfer a check to another person.
Full endorsement
A savings bank owned by and operated for the benefit of its depositors.
Mutual savings bank
The part of the money deposited by customers that banks are required to deposit with the Federal Reserve System.
Reserves
A fee a bank charges for handling a checking account.
Services charge
A prepaid card for phone service and other similar transactions.
Stored value card
*Some web companies have created their own cyber ash or E-money that serves as a medium of exchange for online transaction.
True
A commercial bank is often called a full-service bank.
True
Ninety-nine percent of banks have federal deposit insurance.
True
Savings and loan associations traditionally specialized in making loans for home mortgages.
True
Sometimes two or more people have a checking account together, called a joint account.
True
The owner of the account who signs the check is the drawer.
True
When you buy something with a credit card, you are borrowing money from the bank.
True
With ____ ____ ____, you authorize preset amounts of monthly expenses and the bank deducts payments from your account and transfers them to the appropriate companies.
automatic bill payment
A check that a bank draws on its own funds is called a ____.
cashier's check.
A user-owned, not-for-profit, cooperative financial institution is called a ____ ____ ____.
credit union.
When you put money into a checking account, you fill out a ____.
deposit slip.
non-deposit financial institution
life insurance company
Checks that have not been deducted from a bank statement balance are called ____ checks.
outstanding
They make loans based on the value of jewelry or some valuable item.
pawnshops
Checking accounts and debit cards are examples of financial institution's
payment services.
A merchant accepts debit cards to pay for purchases with ____.
point-of-sale transactions.
NOT a good check-writing habit
postdate all checks
Money or other property that is turned over to a bank to manage for a customer is said to be held in ____.
trust.
