Other Services of Financial Institutions

What are the dangers of having overdraft protection?

A person could (1) misuse the service and end up paying more in fees than the purchased item cost, (2) rely on the service and not pay attention to his.her balance, and (3) cause themselves financial hardship in attempting to pay the fees.

A fee is paid

A. for each overdraft.

The stop payment service can only be

B. initiated by the account owner.

Banks also provide special services such as

D. all of the above

Explain how electronic funds transfer systems have changed the financial services industry.

EFT systems include items such as ATM's, direct deposit, automatic payments, pay-by-phone, point-of-sale, and online banking. All these items has made banking more convenient for consumers to manage account transactions. There is no longer a need to have to try and get to the bank during business hours. It has also eliminated the need to have physical bank locations since almost everything can be done in the EFT system. Good examples are financial companies such as ING and WaMu.

Please select the word from the list that best fits the definition Direct deposit is a form of this service.

electronic banking

Please select the word from the list that best fits the definition A part of a system of carrying out financial transactions by computer rather than using checks and cash.

electronic funds transfer

An ATM machine is an electronic terminal that only allows you to withdraw cash. Please select the best answer from the choices provided

false

You can only make deposits at the drive-up ATM when the bank is open. Please select the best answer from the choices provided

false

If you notice a check has been stolen, it is a good idea to request a(n)

not b

Which of the following statements is NOT true regarding drive-up banking services?

not b

Please select the word from the list that best fits the definition The rise of technology has led to this kind of banking, whose main feature is its convenience.

online banking

Please select the word from the list that best fits the definition A financial institution's decision to honor your checks even when you have exceeded your balance.

overdraft protection

Please select the word from the list that best fits the definition A service in which you handle transactions with your financial institution over the telephone.

pay-by-phone transfer

Please select the word from the list that best fits the definition The immediate transfer of funds from a customer's bank account to a store for merchandise occurs at the ________.

point-of-sale

Please select the word from the list that best fits the definition A rented unit in a vault used for storage of documents and valuables.

safe-deposit box

Please select the word from the list that best fits the definition Which of the following do banks usually offer for an additional fee?

special services

Please select the word from the list that best fits the definition A security service which you would request if a check was stolen.

stop payment

A fee is paid for every overdraft. Please select the best answer from the choices provided

true

Rental charges for safe-deposit boxes can vary by size. Please select the best answer from the choices provided

true