Personal Finance- Banking
Do I know all the parts of the check?
(I can not upload a picture) on you study guide there are 9 things to label 1- date 2- payee 3- amount written in numbers 4- amount written in words 5- signature of the person writing the check 6- memo line ( a note of what the check is for) 7- routing number 8- account number 9- check number
List 3 jobs (roles) of the FED
-Conducting Monetary Policy -Regulating and Supervising the Banking industry -Providing Financial services to banks
Rank the following: least (#1) to most (#5) liquid certificate of deposit (CD) savings account checking account savings bond money market account (MMA)
1-Savings Bond 2-Certificate of Deposit (CD) 3-Money Market Account (MMA) 4-Savings Account 5-Checking Account
A(n)___ allows you to make deposits and withdraws outside normal banking hours.
ATM
A report that accounts for the differences between the bank statement and a checkbook balance is called a (n)___. You complete the report to check for errors.
Bank Reconciliation
____ is a check drawn by a bank (for a fee) on its own funds and signed by the bank's cashier. Guaranteed funds (larger amounts).
Cashier's Check
A(n) _____ is a like term savings account that earns you slightly more interest, but is less liquid than a traditional savings account. It is considered a timed deposit.
Certificate of Deposit (CD)
____ Is a written order to a financial institution directing the financial institution to pay stated amount of money, from the cutomer's account.
Check (personal check)
A(n)___ is a for-profit organization owned by stockholders and run by a paid board of directors. It offers a wide variety of services to anyone.
Commercial Bank
Using a _____ is like borrowing money and agreeing to pay it back at a later date. Buy now, pay later.
Credit Card
A(n)___ is a nonprofit finacial institution that is owned by its members and organized for their benefit.
Credit Union
A(n)___ allows you to withdraw money from an ATM or pay for purchases from your checking account.
Debit Card
______is a way to pay bills online and have paychecks deposited directly into your account.
Electronic Funds Transfer (EFT)
A(n)____ is the signature of the payee, the party to whom the check has been written. Usually done right before a deposit is made.
Endorsement
When choosing a commercial bank, you should make sure your money is protected by the ___.
FDIC
_____describes the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset's price.
Liquidity
A ____ will allow you to write a limited number of checks and have a varying interest rates.
Money Market Account
_____ a written order for the payment of a sum to a named individual; obtainable and payable at a bank, post office, or convenient store. For a fee usually $0.99- $5. Usually smaller amounts of money. Less than $1,000.
Money Order
When choosing a credit union, you should make sure your money is protected by the ___.
NCUA
_______is a service which provides a short-term loan to cover checks written for more than the customer has in their account. Many times you have to opt in for this feature and pay a monthly service charge.
Overdraft Protection
A ____ is a passcode you use to get access to your savings and/or checking account.
PIN #
A(n) ____ is an IOU, a promise to pay you at a later date with interest. Deposits must be held for a certain length of time. The least liquid savings tool.
Savings Bond
List 5 cash management tools
Stocks Real Estate Mutual Funds Collectibles Futures
A request that a bank or other finacial institution not cash a particular check is called a(n)_______.
Stop Payment Order
What is the FED?
The Federal Reserve Bank --- the Central Bank of the United States--- The Bankers Bank
What does it mean to bounce a check?
To not have enough money in my checking account. I write a check for more than the amount in my account.
Why should you keep a check register?
To record my bank transactions. So I know how much money I have in my account and to see if my transactions have been processed correctly by the bank.
____ are redeemable in many places around the worlds and can be replaced if lost or stolen. You would want to pick them up at a financial institution before leaving the country.
Traveler's Checks
Explain how a credit card works
buy now, pay later-- like a short term loan
Explain how a debt card works
buy now, pay now-- money comes from your checking account
What services are offered by a financial institution?
online banking checking accounts savings account certificates of deposit (CDs) individual retirement accounts (IRAs) Credit cards debit cards auto loans boat loans student loans home mortgages