POB Obj. 4.02

Federal Reserve Bank Activities

A Federal Reserve Bank serves member banks and the economy by holding bank reserves for member banks and, clearing checks in different cities.

Mutual Savings Bank

A Savings bank that is owned by, and operated for the benefit of its depositors. The profits are distributed in proportion to the amount of business each participant does with the company.

Consumer Finance Companies

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

Check Register

A separate book, usually the same size as the checkbook, that provides blanks to fill in the information about each check written.

Credit Unions

A user-owned, not-for-profit, cooperative financial institution that serves members only by accepting savings deposits and making loans for a variety of purposes.

Bank Statement

At regular intervals, usually monthly, the bank will send a report on the status of your checking and/or savings account.

Commercial Bank

Commercial Banks are often called full-service banks because they offer a wide range of financial services like checking accounts, savings accounts, individual and business loans, and other services.

Debit Card

Debit card, also called a cash card, iis used for ATM transactions. It is issued by your bank in order for you to access your own money in a checking or savings account.

Depository Institutions

Financial institutions that accept checking and savings deposits from individuals and businesses and use a portion of the deposits to extend loans with interest owed. Banks, savings and loan associations, mutual savings banks, and credit unions are examples.

Drawer

Owner of the account who signs the check

Investment Companies

People can choose investment opportunities for long-term growth of their money through investment companies. Many investors own shares of one of the more than 15,000 mutual funds worldwide.

Life Insurance Companies

People commonly buy life insurance to provide financial security for their dependents. Besides, protection, many life insurance companies also offer financial services such as investments.

Electronic Funds Transfer (EFT)

Refers to the use of computers and other technology for banking activities and includes the use of automated teller machines (ATM), point-of-sale transactions, direct deposit, and automatic bill payment.

Bank Reconciliation

The document created to show how the checking account register ending balance and the bank statement ending balance are the same. (Bringing both balances into agreement)

Federal Deposit Insurance Corporation

The federal agency that helps to regulate banks and other financial institutions. It protects depositors money in case of a failure of a bank or financial institution that it regulates. It insures all accounts in the same name at each bank up to an amount of $100,000.

Federal Reserve System

The federal government set up this system to supervise and regulate member banks and to help serve the public efficiently. All national banks are required to join the Federal Reserve System, and state banks may join. The U.S. is divided into 12 Federal Reserve districts, with a central Federal Reserve Bank in each district.

Drawee or Payee

The person or business to whom the check is written

Non-Deposit Intermediaries

This category of financial institutions do not take or hold deposits, but earn their money selling specific services like life insurance, mutual fund investments, consumer loans, mortgage loans, check-cashing services, and pawnshops.

Clearing

This term refers to the paying of checks among different banks in different cities. The Federal Reserve processes millions of checks each day to make sure that the correct amounts are added to and subtracted from the appropriate customer accounts.

Savings and Loan Association

Traditionally specialized in savings accounts and making loans for home mortgages. Recently, these financial institutions have expanded to offer a greater array of financial services.

Endorsement

Written evidence that you received payment or that you transferred your right of receiving payment to someone else.