Intro to bus chapter 17 study guide

safety

If deposit insurance is most important to you when selecting a financial institution, you are most concerned with ________

1913

In what year was the federal reserve system created

false

T/F Automatic payments are made through automatic teller machines

false

T/F If you write only a few checks each month, you should consider a regular checking account

false stop payment order

T/F a cease and desist order is written notice to the bank not to pay a check

false cashier's check

T/F a certified check is a check that a bank draws on its own funds

false ATM card

T/F a credit card is used for ATM transactions

false service charge

T/F a fee a bank charges for handling a checking account is a penalty

true

T/F an endorsement is written evidence that you received payment

true

T/F banks offer safe deposit boxes for the storage of valuables

true

T/F electronic funds transfer uses technology for banking activities

true

T/F the federal reserve supervises and regulates member banks

true

T/F using a debit card is similar to writing a check

pawnshop

The financial institution most likely to charge the highest rate for a loan would be ___________

signature card

The first document that must be completed when opening a checking account

pawn shop

_________ make loans on the value of some tangible object, such as jewlery

check register

a _________ is a separate book used for recording checking account activity

deposit institutions

accept deposits from people and businesses and use them to finance their business

credit unions

accept saving deposits and make loans to members only

full endorsement

allows you to transfer check to another person

drawee

bank that pays the check

cashier's check

check that a bank draws on its own fund; it costs the purchaser the amount of the check and a fee

bank reconciliation

checking the balance of your account between what the statement says and what you have in your check register

outstanding checks

checks that have not been paid by the bank yet

service charge

fees banks charge for handling an account

restrictive endorsement

for deposits only, use if mailing a check

commercial banks

frequently have branch offices in shopping centers and grocery stores

deposit slip

list all items you are depositing in an account

commercial bank

offer wide range of financial services. checking and saving accounts. make loans

commercial bank

often described as full service banks because they offer a wide range of services

mutual savings banks

owned by and operated for benefit of depositors. Profits distributed to depositors. Mainly for savings and home loans

drawer

owner of account who signs the check

clearing

paying of checks among different banks in different locations

store value cards

payment card with a monetary value stored on the card

payee

person to whom check is written

certified check

personal check for which a bank has guaranteed payment

store value cards

prepaid cards for items such as phone service called _________

mutual savings bank

profits are distributed in proportion to the amount of business each participant does

FDIC

protects depositor's money in case of the failure of a bank up to $250,000

bank statement

report on status of your account

traveler's check

special form for making payments when you are away from home are ________

savings and loan associations

specialized in savings accounts and making home mortgages

savings and loan associations

traditionally specialized in savings accounts and loans for home mortgages

safe deposit box

used for storage of valuables

debit card

used instead of cash to make payments directly from an account

signature card

used to verify your signature

credit unions

user owned and not for profit

joint account

when two or more people have a bank account together it is called a __________

endorsement

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

stop payment order

written notice that tells the bake not to pay a certain check

blank endorsement

-Makes check payable to anyone who has check. So not sign until you are ready to deposit in your account -signing your name as it is written on a check

federal reserve system

-Supervise and regulate member banks -Helps banks serve the public efficiently -All national banks are required to join the FED -US divided into 12 federal reserve districts -Central Fed Reserve Bank in each district

certified check

A personal check with guaranteed payment is a ______