10 Financial Services Flashcards
What is an ATM transaction fee?
Payments levied each time an automated teller machine (ATM) is used.
These fees can vary by ATM operator and may apply to both bank and non-bank ATMs.
Define certificate of deposit.
An interest-earning savings instrument purchased for a fixed period of time.
Typically, early withdrawal from a certificate of deposit may incur penalties.
What is a checking account?
An account at a depository institution, which allows depositors to write checks against their deposited funds.
This facilitates the transfer of deposited funds to other people and organizations.
What are commercial banks?
A type of bank that provides services such as accepting deposits, making business loans, and offering basic investment products.
They serve both individual and business clients.
What is a credit union?
A member-owned, not-for-profit, insured financial institution that provides checking, savings, and loan services to members.
Credit unions often offer better interest rates and lower fees compared to commercial banks.
Define depository institution.
Organizations licensed to take deposits and make loans.
Examples include commercial banks, credit unions, and savings and loan associations.
What are electronic funds transfers?
Funds shifted electronically among various accounts, or to and from other people and businesses.
This includes transactions like direct deposits and online bill payments.
What is a money market account?
Interest-earning accounts that pay relatively high interest rates and offer limited check-writing privileges.
These accounts typically require a higher minimum balance than regular savings accounts.
Define money market mutual fund.
Money market account in a mutual fund rather than at a depository institution.
These funds invest in short-term, high-quality investments issued by government and corporate entities.
What are periodic statements?
Monthly reports that show all electronic transfers to and from accounts, fees charged, and opening and closing balances.
They provide an overview of account activity for the month.
