Economics and Personal Finances: Module 6 Vocabulary
Debit card
-plastic card used to deduct money from a checking account almost immediately to pay for purchases; looks like and is treated like a credit card; however the amount of purchase is subtracted from the users account; aka a check card
⦁ Outstanding Checks-
a check that has been written, but not yet received and paid by the bank
Bad check-
a check written against an account with insufficient funds to cover it
Personal Identification Number (PIN)-
a combination of letters or number that you use to access an account
Bank-
a financial institution that handles money, including keeping it for saving or commercial purposes; for a profit company that is owned by investors
Check Register-
a register where you list all bank transactions including deposits, checks, debit card purchases, atm withdrawals, and bank fees
Check-
a written order instructing the bank to pay a certain amount of money to another person or place; must contain date, payee, amount, and signature
⦁ Overdraft Protection-
allows you to cover checks or withdrawals up to a specified amount if you have insufficient funds in the account
Checking account-
an account which allows the holder to write checks against deposited funds
Blank Endorsement-
check that can be further endorsed
Stale Check-
check that is more than six months old. It may no longer be honored by the bank
Deposit Slip-
contains account holders info and allows money to be deposited into the correct account
M1-
currency+coins+checking accounts( demand deposits)
Federal Deposit Insurance Corporation (FDIC)-
independent agency of the US government that protects customers from the loss of any deposit if the financial institution fails
⦁ Non-sufficient funds (NSF)-
independent federal agency that supervises federal credit unions and insures depositor's money in credit union
⦁ National Credit Union Administration(NCUA)
independent federal agency that supervises federal credit unions and insuresdepositor's money in credit unions
Restrictive Endorsement-
limits any further negotiation of the check
M2-
m1+savings account+ money market accounts
Deposit-
money deposited in a bank or some financial institution
Interest (saving)-
money said to you by a financial institution when you deposit funds there
⦁ Statement -
monthly document sent by the financial institution that list your account balance at the beginning of the period and the end of the period; includes checks, deposits, deductions, and fees
Credit Union-
not for profit financial institution that is owned entirely by its members
Special Endorsement-
only person or company named in the endorsement can transfer the check to someone; transfers the right to cash the check to someone else
Required reserve ratio-
percentage of deposits banks are required to keep in reserves
⦁ Payee-
person, company, or organization to whom a check is written
⦁ Stop payment-
request that bank not cash or honor a specific check
Endorse-
sign the back of a check authorizing the check to be exchanged for cash or credit
Automatic Teller Machine (ATM)-
specialized computer used by bank customers to handle their money (get cash, make deposits, check balances)
Federal Reserve-
the central banking system in the US which consist of the twelve regional banks, the Federal Reserve Board, and the Federal Open Market Committee
Reconciling-
the process of comparing the bank balance and check register so that they show the same amounts
⦁ Withdrawal-
to remove money from a bank account
Electronic Funds Transfer (EFT)-
uses a computer-based system that enables you to transfer money from one account to another in lieu of writing a check or exchanging cash
Cleared Check-
when the bank pays a check you have written and deducts the amount from your account
