Chapter 17 intro

Lakukan tugas rumah & ujian kamu dengan baik sekarang menggunakan Quizwiz!

Banks that join the federal reserve system are known as ...

Member banks

is a savings bank that is owned by, and operated for the benefit of, its depositors

Mutual savings bank

Can you open an account in a Federal Reserve Bank? Why?

No because it is a bank for banks

specialized in savings accounts and making loans for home morgages

Savings and loan association (S&L)

if you only write a few checks each month, your account is considered

a special checking account (aka an activity account)

One of the main services that financial institutions offer is ...

accepting money from customers for safekeeping

With______, the bank deducts payments from your account and transfers them to the appropriate companies

automatic bill payment

requires a bank customer to authorize preset amounts of monthly expenses

automatic bill payments

where do you endorse a check

back of the left end

sold by a bank stating that money is to be paid to a specific person or business

bank money order

-the balance at the beginning of the month -the deposits made during the month -the check is paid by the bank during the month -any automated teller information during the month -EFT or special payments the bank has made -service charges for the month -any interest earned on the account -the balance at the end of the month

bank statement information

what does cleared mean

been paid

an endorsement that consist of only the endoser's name

blank endorsement

Banks might not return actual __________ _________ that have been paid . Instead, banks can use a ____________ ___________ which is a digital reproduction of the original paper check

cancelled checks, substitute check

a check that the bank draws on its own funds

cashier's check

a personal check for which the bank has guaranteed payment

certified check

debit cards such as mastercards and visa

check cards

a form attached to the check by a perforated line

check stub

used by people who don't have bank accounts and they cash paychecks and obtain other financial services

check-cashing outlets

types of payment services include

checking accounts, debit cards, online payments, and automatic withdrawls

The paying of checks among different banks in different cities is called...

clearing

refers to the process of paying checks and other payments among different banks

clearing

The most common way for a bank to be organized

commercial bank

A business that specializes in making loans for long lasting, durable goods such as cars and refrigerators, and for financial emergencies

consumer finance companies

This non-deposit financial institution specializes in making loans for long-lasting or durable goods, such as cars and refrigerators, and for financial emergencies

consumer finance company

borrowing money to pay back later

credit card

people in the same company, government agency, labor union, or profession often form __________ _________

credit unions

for atm transactions

debit card

WHat are the two types of financial institutions?

deposit and non-deposit

commercial banks, savings and loan associations, mutual savings banks and credit unions are a part of which financial institution?

deposit institution

accept deposits from people and businesses use them to finance their buisness

deposit institutions (depository intermediaries)

when you deposit money in a checking account, you fill out a ...

deposit slip

funds are deposited electronically and available automatically for your use

direct deposit

refers to the use of computers and other technology for banking activities

electronic banking

ATMs, personal computers, cell phones, and other electronic devices are all...

electronic banking services

This type of money order is typically issued by travel agencies, supermarkets, pharmacists, and convenience stores

express money order

issued by various organizations including traveler's check companies, travel agencies, and many supermarkets/pharmacies/ convenience stores

express money order

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

federal deposit insurance corporation (FDIC)

allows you to transfer checks to another person

full endorsement (special endorsement)

What do you do when you put money in a bank?

help create jobs and economic growth which benefits your community and your society

As a result, a bank will lend only a certain percentage of deposited funds. It keeps the rest in reserve. This regulation is designed to...

help the banking system and the economy to operate efficiently and to protect deposits

people can choose investment opportunities for long term growth of their money through _______________ ______________

investment companies

will allow financial activities and other business transactions based on your geographical position

location based services

how are mutual savings banks organized

mainly for savings and home loans

Who do credit unions serve

members only

provide loans for buying a home or other real estate

mortgage companies

They do not take or hold deposits. They earn their money selling specific services or policies

non deposit institutions

life insurance companies, investment companies, consumer finance companies, mortgage companies, check cashing outlets, pawnshops are a part of which financial institution?

non-deposit institution

make loans based on the value of some tangible object

pawnshops

a merchant accepts a debit card to pay for purchases

payments at the point of sale

purchased from the U.S. post office can be sent safely through the mail

postal money order

Typical e-banking services allow customers to do all of the following EXCEPT...

print new checks

bringing the balances into agreement is known as

reconciling the bank balance

Bonita writes many checks each month. Which type of checking account is probably the best choice for her?

regular checking account

What are the three types of checking accounts

regular checking accounts, interest earning checking accounts, and special checking accounts

Zack has endorsed a check by writing "For deposit only" above his signature. This is a...

restrictive endorsement

limits the use the check to the purpose given in the endorsement

restrictive endorsement

Mutual savings banks are organized mainly for...

savings and home loans

What should you think about when selecting a financial institution?

services offered, safety, convenience, fees and charges, and restrictions

A checking account at a credit union

share draft(because the members are called shareholder

requires your legal name, address, phone, social security number, driver's license number and email address

signature card

electronic wallets similar to ATM cards

smart cards

prepaid cards for for phone service, transit fares, highway tools, and school lunches

store-value cards

involves buying a message to direct a telegraph office to pay a sum of money to a certain person or business

telegraphic money order

When you use a debit card in a store or restaurant,

the amount of the purchase is deducted from your bank account

What makes banking services possible?

the savings you and others deposit

why do people buy life insurance copanies

to provide financial security for their dependents

special forms designed for making payments when away from home

travelor's checks

The money or other property that is turned over for the bank is said to be held in ______________

trusst

An interest-earning checking account

usually earns interest only if the account stays above the required amount

If the interest earning checking account falls below the required amount, the bank ...

usually pays no interest and may add a service charge

first and last steps of writing a check

write checks in order by number, sign checks with the same signature you wrote on signature card

first and last step of proper check writing

write checks only on the forms provided by your bank, record every payment from your checking account

what is the minimum balance for regular checking accounts

$300

What are the banking services that individuals, businesses and governments use

-borrow money to build roads -borrow money to buy seeds for crops -deposit cash from business operations -finance a college education -invest for retirement -obtain a morgage -process credit card transactions -save for vacation

Name some federal reserve services

-holding of reserves -clearing checks

What are the four basic types of banking services that you will use

1. savings accounts 2. checking and payment accounts 3. loans and other credit plans 4. other services, such as safe-deposit boxes and investment advice

how to calculate the adjusted balance

1. subtract the total of the outstanding checks from the bank statement balance 2. add any deposits in transit to the balance statement balance 3. subtract service charges, fees, and automatic payments from your checkbook balance 4. add any interest earned to your check register balance

how much do banks charge for each check

10 to 20 cents

The United States is divided into ________ federal reserve districts

12

A lost or stolen debit card can be expensive. If you notify the financial institution within two days of the lost card, your liability for unauthorized use is $__. After that, you can be liable for up to $____ of unauthorized use for up to __ days

50, 500, 60

traditional banker's hours

9am to 3pm

an automatic teller machine that allows many banking services

ATMs (cash machine)


Set pelajaran terkait

development part 1 practice questions

View Set

Immunology Chapter 3 - Antigen Capture and Presentation to Lymphocytes

View Set

PrepU Trans Assignment 9 Documenting

View Set