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
