Fin Lit Unit 1 summative
Signature card
A card that shows each authorized person's signature for a bank account.
Void check
A check that has been defaced in order to prevent its use
What are two ways you can withdraw money from your account?
ATM, going inside the bank, or making an online transfer
Bank statement balance
Add: Deposits in transit. Deduct: Outstanding checks Add or Deduct: Bank errors
Individual account
An account that has only one holder
Online banking
An electronic way to view account activity and pay bills via the Internet and an institution's website.
ATM
Automated Teller Machine
Bank
Drawee
The bank that pays the check is the
Drawee
The party who writes the check is the
Drawer
T or F ATM cards can be used to make purchases
False
T or F If you are signed up for overdraft protection you cannot opt out
False
what are two ways you can deposit money?
Going into the bank, cashing a check
what are three things to consider when opening an account
Location of branches near you, any additional fees, and interest rates
The largest source of fees when it comes to banking is
Overdraft
Pay to the order of
Payee
The person getting paid is the
Payee
Check register
The book in which you keep records of checks, deposits, debit card transactions, and ATM withdrawals.
You have to have a checking account to have a debit card
True
What is the difference between a credit union and a bank?
You have to be a member to join a credit union and credit unions are non-profit whereas banks make profits.
Joint checking account
a bank account shared by two or more individuals
ATM card
a card that allows basic financial services from an automated teller machine
Peer to peer payments
allow for an immediate money transfer from one person to another
Person who signs the check is the?
drawer
what does FDIC do?
insures 250,000 per depositor on the account
Insufficient funds
you do not have enough money in your account to pay for something