finance unit 3

How much does the FDIC and NCUA insure each account for?

$250,000

Authorize bills to be paid by a specific depository institution account

Automatic payment

Full-service institutions because they offer a wide variety of services

Commercial banks

Why do people choose NOT to use banks?

Fees are too high, minimum balance too high, want to keep personal information private

What are some characteristics of commercial banks?

Offer a wide variety of services-checking, savings, online/mobile banking, ATMs, CDs, available to a variety of customers

The use of the internet to conduct banking transactions

Online banking

Check written that has not been cleared by the bank

Outstanding check

Deposit made that has not been processed by the bank.

Outstanding deposit

Personal identification number required for debit cards to be used

PIN

Give two examples of virtual wallets.

Paypal, Venmo, CashApp, Apple Pay

Electronic banking can be performed by which devices?

cell phone, secure bank website

Place to write down all of the transactions that happen in a checking account

check register

Paper checks or debit cards are used to withdraw money deposited into this type of account to pay for items

checking account

What benefit is provided by financial institutions?

convenience, security, variety of services

What is the difference between a debit card and a credit card?

debit cards are linked to your bank account, credit cards are buy now pay later

Online bill pay allows individuals to do what?

deposit checks, transfer fund, check balances, pay bills

Where can ATM's be found?

depository institutions, gas stations, stores, etc.

What are some features of direct deposits and automatic payments?

direct deposit helps you to get paid quicker, it is safer, and more convenient. Automatic payments help to prevent you from forgetting to pay a bill and getting a late fee.

What are some safety tips to follow when using ATM and debit cards?

don't keep your PIN with your card, don't tell anyone your PIN, don't use it on unsecure websites, report to the bank immediately if it is lost or stolen

What are automated teller machines (ATMs)?

electronic compute terminals which offer automated, computerized banking services

Part of the central banking system in the United States.

federal Reserve

The percentage used annually to calculate the total interest either earned or paid from an account supplied by a depository institution

interest rate

What is a blank endorsement?

just your signature on the back of a check that you want deposit

What are some hints that give it away that you have received a scam email?

Asking for your account info, have a strange attachment, spelling mistakes, warning or urgency, bad links.

These are non- profit cooperative institutions owned by their members

Credit Union

A plastic card that looks like a credit card but is electronically connected to the card holder's depository institution

Debit Card

Business which offers multiple services in banking and finance.

Depository Institutions

Allows paychecks to be automatically added into a specified depository institution account

Direct Deposit

The use of the portable devices to conduct banking transactions

Mobile banking

Document available from the depository institution that lists all deposits, withdrawals, and charges that have processed

bank statement

If you add a restrictive phrase like "for deposit only", is an endorsed check the same as cash?

no

What are some characteristics of credit unions?

non-profit, owned by its members

To compare the check register balance and the bank statement balance in order to check for errors

reconcile

What are 3 advantages of online banking?

request transfers, deposit checks, pay bills, see balances, paperless, 24/7 access, fast, convenient

One type of online banking called "Recurring Payment" allows the consumer to:

to arrange for payments to occur automatically each month

What is the purpose of the Federal Deposit Insurance Corporation (FDIC)?

to insure commercial banks and savings and loan associations

Why do people choose to use banks?

to keep money safe, earn interest on accounts, lower interest rates on loans

What is a virtual wallet used for?

to transfer funds from checking account to another person or retailer

Should you record every transaction made with your account on your checkbook register?

yes