Fin Lit Unit 1 summative

Signature card

A card that shows each authorized person's signature for a bank account.

Void check

A check that has been defaced in order to prevent its use

What are two ways you can withdraw money from your account?

ATM, going inside the bank, or making an online transfer

Bank statement balance

Add: Deposits in transit. Deduct: Outstanding checks Add or Deduct: Bank errors

Individual account

An account that has only one holder

Online banking

An electronic way to view account activity and pay bills via the Internet and an institution's website.

ATM

Automated Teller Machine

Bank

Drawee

The bank that pays the check is the

Drawee

The party who writes the check is the

Drawer

T or F ATM cards can be used to make purchases

False

T or F If you are signed up for overdraft protection you cannot opt out

False

what are two ways you can deposit money?

Going into the bank, cashing a check

what are three things to consider when opening an account

Location of branches near you, any additional fees, and interest rates

The largest source of fees when it comes to banking is

Overdraft

Pay to the order of

Payee

The person getting paid is the

Payee

Check register

The book in which you keep records of checks, deposits, debit card transactions, and ATM withdrawals.

You have to have a checking account to have a debit card

True

What is the difference between a credit union and a bank?

You have to be a member to join a credit union and credit unions are non-profit whereas banks make profits.

Joint checking account

a bank account shared by two or more individuals

ATM card

a card that allows basic financial services from an automated teller machine

Peer to peer payments

allow for an immediate money transfer from one person to another

Person who signs the check is the?

drawer

what does FDIC do?

insures 250,000 per depositor on the account

Insufficient funds

you do not have enough money in your account to pay for something