Chapter 17: Vocabulary

Check Register

The book in which you keep records of checks, deposits, debit card transactions, and atm withdrawals.

Federal Reserve System

The system created by Congress in 1913 to establish banking practices and regulate currency in circulation and the amount of credit available. It consists of 12 regional banks supervised by the Board of Governors. Often called simply the Fed.

Commercial bank

a bank that offers a full range of financial services

Debit Card

a cash card that allows you to withdraw money or pay for purchases from your checking or savings account

Service Charge

a fee a bank charges for handling a checking account

Credit Union

a nonprofit financial institution that is owned by its members and organized for their benefit

Safe-Deposit Boxes

a secured area in a bank vault for storing valuables

Bank Statement

a statement received monthly from the bank that shows the depositor's bank transactions and balances

Stop Payment Order

a written notice that tells the bank not to pay a certain check

Outstanding Checks

checks that have not been deducted from the bank statement balance.

Bank Reconciliation

the document created to show how the two balances were brought into agreement

Federal Deposit Insurance Corporation

the federal agency that helps to regulate banks and other financial institutions

Endorsement

written evidence that you received payment or that you transferred your right of receiving payment to someone else