Intro to Business Banking
the federal agency that protects depositors' money in case a bank fails is the
Federal Deposit Insurance Corporation (FDIC)
a federal agency that protects depositors' money in case of the failure of a bank or financial institution that is regulated by the FDIC
Federal Deposit Insurance Corporation (FDIC) (B)
a nationwide banking plan set up by our federal government to supervise and regulate member banks
Federal Reserve System (Fed) (L)
Another name for a "full service bank"
commercial bank
a bank that offers a full range of financial services
commercial bank (A)
a financial institution that specializes in making loans for long-lasting or durable goods and financial emergency
consumer finance company (F)
a not-for-profit financial institution formed by people who have like occupations or live in the same community and that serves only its members
credit union (E)
an efficient way for a bank to transfer funds immediately from your savings account to another bank is with an
electronic funds transfer
a system through which funds are moved electronically from one account to another and from one bank to another
electronic funds transfer (H)
a mortgage company is an example of a deposit-type institution
false
all banks must join the Federal Reserve System
false
all checking accounts must use electronic funds transfer
false
in bank titles, "N.A." is used to designate state banks
false
the money earned on funds deposited in saving accounts is called
interest
an amount paid for the use of money
interest (G)
savings that are put to work to earn more money are called
investments
savings that are put to work to earn more money
investments (J)
a bank owned by depositors that mainly handles savings account make loans to home buyers
mutual savings bank (D)
when a bank is granted a charter by the federal government, the bank operates as a __________ bank
national
deposits in credit union accounts are insured by the
national credit union administration
all national banks required to join the Federal ___________ System
reserve
a good place to keep a list of life insurance policies is in a bank's
safe deposit box
a secured area in a bank vault for storing valuables
safe-deposit boxes (I)
a financial institution that specializes in savings accounts and loans for mortgages
savings and loans association (C)
a bank is a business as much as a clothing shop is
true
a life insurance company is a non deposit financial institutions
true
financial supermarkets offer everything from automated teller machines and loans to safe-deposit boxes
true
many savings and loan associations are beginning to call themselves savings banks
true
financial institutions that specialize in managing the money and property of others
trust companies (K)
A bank that manages money and property for its customers is called a
trust companies?
