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