Chapter 7

Federal Deposit Insurance Corporation (FDIC)

A federal government agency that insures deposits in banks

Checking account

a bank account that allows depositors to write checks to make payments

cashier`s check

a bank`s own personal check, signed by the bank`s cashier. Payment of this check comes from the bank`s own funds

automatic withdrawal

a bill-paying arrangement in which your bank removes money from your account at a specified time and sends it to a company to pay your bill

check register

a booklet provided by your bank for recording your checking account transactions

safe deposit boxes

a box with a lock that you may rent from a bank for safe storage of important papers and valuable possessions

Money order

a check that draws on the funds of the bank or other financial business that issued it

canceled checks

a check with the bank's stamp on it, indicating that it has been paid

Automated teller machine (ATM)

a computer terminal that you can use to make deposits, withdraw cash, transfer money between accounts, check your account balances, and pay some kinds of bills

electronic funds transfer (EFT)

the movement of funds from one account to another by computer

payee

the person or business to whom a check is written

account balance

the total amount in your bank account at a specific date

barter

trading goods and services without using money

debit card

card that transfers funds electronically from your checking account to the store's account to pay for a purchase

traveler`s checks

checks that you pay for in advance, and if they are lost or stolen, the issuing company replaces them

Direct Deposit

depositing an employee's pay into the employee's bank account electronically, instead of using a paper paycheck

inflation

general increase in the average level of prices in a nation`s economy

currency

paper money and coins used for financial transactions

overdrawing

writing a check for more money than is deposited in your checking account

endorsement

your signature on the back of a check, acknowledging that you received the funds or transferred your right to the funds to someone else

certified check

A personal check that has been stamped and signed by a bank officer as a guarantee that your account has the funds to cover the check

Statement

A written record from your bank of all the transaction involving your account

Personal Identification Number (PIN)

Your secret number that identifies you to an ATM as the owner of the ATM card

wire transfer

an electronic communication that moves funds from an account in one bank to an account in a different bank instantly

check

an order to a bank to pay a specified sum to the person or business named on the check