AFCPE Module 10 - Financial Services

Question 1

ATM transaction fee

Answer 1

payments levied each time an automated teller machine (ATM) is used.

Question 2

Certificate of deposit

Answer 2

an interest-earning savings instrument purchased for a fixed period of time

Question 3

Checking account

Answer 3

an account at a depository institution, which allows depositors to write checks against their deposited funds, thereby transferring deposited funds to other people and organizations.

Question 4

Commercial banks

Answer 4

a type of bank that provides services such as accepting deposits, making business loans, and offering basic investment products.

Question 5

Credit union

Answer 5

a member-owned, not-for-profit, insured financial institution that provides checking, savings, and loan services to members

Question 6

Depository institution

Answer 6

organizations licensed to take deposits and make loans

Question 7

Electronic funds transfers

Answer 7

funds shifted electronically (rather than by check or cash) among various accounts, or to and from other people and businesses.

Question 8

Money market account

Answer 8

interest-earning accounts that pay relatively high interest rates and offer limited check-writing privileges

Question 9

Money market mutual fund

Answer 9

money market account in a mutual fund rather than at a depository institution

Question 10

Periodic statements

Answer 10

monthly reports that show all electronic transfers to and from accounts, fees charged, and opening and closing balances.