personal finance unit 4 test
Customer deposits in a federally insured bank are insured up to what amount?
$250,000
Which of the following topics should be considered when shopping for a checking account?
All of the above.
The ____________________________________________ is an independent agency created by the federal government to protect bank customers by insuring their deposits.
FDIC
Which following statement is true of Internet banks?
Their low overhead costs allow them to pay higher interest rates on savings accounts.
Which of the following items does not appear on a regular check?
balance of the account
A financial institution that receives, lends, exchanges, and safeguards money is a(n) _____________________________________________.
bank
Process of comparing the check register with the bank statement.
bank reconciliation
Record of checks, ATM transactions, deposits, and charges on an account.
bank statement
Personal check that the bank certifies is genuine and that there is enough money to cover the check.
certified check
License authorizing a bank to operate.
charter
A written order for the bank to pay a specific amount to a specific person is a(n) _____________________________________________.
check
It is important to keep track of all your checking account transactions in the _____________________________________________ so you know how much you have in your account.
check register
Bank account that allows the owner to make deposits, write checks, and withdraw money.
checking account
A(n) _____________________________________________ bank is a business in which the primary function is to receive, transfer, and lend money to individuals, businesses, and governments.
commercial
Which type of bank is commonly known as a full-service bank?
commercial bank
A type of commercial bank that is locally owned and operated is a(n) _____________________________________________ bank.
community
Plastic card that allows the holder to make credit purchases up to an authorized amount.
credit card
Nonprofit financial cooperative owned and operated for the benefit of its members.
credit union
Using a(n) _____________________________________________ has the same result as writing a check, because the amount of the purchase comes directly from the checking account.
debit card
Portion of the bank's earnings paid to depositors of a mutual savings bank.
dividends
A(n) ______ checking account is a combination savings and checking account.
interest-bearing
Money that can be accessed easily is said to be _____________________________________________.
liquid
Anything of value that is accepted in return for goods and services.
money
Financial institution that is owned by its depositors.
mutual savings bank
A(n) ____________________________________________ bank provides banking services exclusively online.
online
Check written for an amount greater than the balance of the account.
overdraft
What banking service ensures a financial institution will honor a check even if it exceeds the account balance?
overdraft protection
The person, business, or organization to whom the check is written is the _____________________________________________.
payee
A(n) _____ check is written with a future date.
postdated
To ____________________________________________ is to compare items to make sure they are in agreement with each other.
reconcile
You received your paycheck at the end of the day today, and you plan to go to the bank tomorrow. If you want to endorse the check immediately, which endorsement should you use?
restrictive endorsement
A box within a bank vault that can be rented by a customer to store valuables is a(n) _____________________________________________.
safety deposit box
A(n) _____________________________________________ is used by depositors to accumulate money for future use.
savings account
Financial institution that offers most of the services commercial banks do.
savings and loan association (S & L)
A(n) _____________________________________________ requests that a financial institution refuses to honor a check written.
stop payment order
A _____ is a special payment that functions as cash.
traveler's check
Movement of money electronically from one financial institution to another.
electronic funds transfer (EFT)
Signature on the back of a check.
endorsement
______________________________ is the process of transferring money from one individual or organization to another.
financial exchange
Organization that provides services related to money.
financial institution