Banking

Question 1

Commercial bank

Answer 1

Financial institutions owned by shareholders and operated by their profit

Question 2

Mutual savings bank

Answer 2

State-charted financial institutions operated by trustees for the benefit of the depositors

Question 3

Savings and loan

Answer 3

Financial institutions that originally specialised in providing funds to home buyers but now provide a variety of financial services

Question 4

Credit union

Answer 4

A non-profit financial institution owned by its members

Question 5

Internet bank

Answer 5

A financial institution that operates exclusively over the Internet using online banking

Question 6

FDIC

Answer 6

Federal deposit insurance Corporation is a federal agency that insurers deposit accounts in most things and savings associations

Question 7

EFT

Answer 7

Electronic funds transfer is the movement of funds by electronic means

Question 8

ATM

Answer 8

Automated teller machine. It’s a computer terminal that gives bank customers electronic access to their accounts at any time through the use of a specially coded card

Question 9

PIN

Answer 9

Personal identification number. It’s a secret code that protects the security of bank accounts

Question 10

Debit card

Answer 10

A card that allows the user to subtract money from a bank account in order to obtain cash or make purchases

Question 11

Payee

Answer 11

The one to whom a check is made to

Question 12

Overdraft

Answer 12

The lack of sufficient funds to cover the full amount of a check

Question 13

Endorsement

Answer 13

A signature on the back of a check that entitles the payee to either receive payment or transfer it to someone else

Question 14

Reconcile

Answer 14

To bring a bank statement and your own record of transaction into agreement

Question 15

Certified check

Answer 15

A check from a personal checking account that’s been stamped by the bank to guarantee funds in an account

Question 16

Cashier’s check

Answer 16

A check issued and guaranteed by the bank

Question 17

Money order

Answer 17

A purchased certificate used to pay a specific amount to a particular person

Question 18

Travelers checks

Answer 18

Documents that function as cash but can be replaced if lost or stolen

Question 19

Prepaid card

Answer 19

Cards sold in specified dollar amounts that can be used to purchase products or services

Question 20

Outstanding

Answer 20

Refers to a transaction received by the bank after the closing date of bank statement

Question 21

Cancelled check

Answer 21

Check that is stamp and perforated by a financial institution to show it’s been paid

Question 22

Money transfer service

Answer 22

Transferring money from one place to another

Question 23

Wire transfer

Answer 23

A financial transaction that electronically move funds from one bank to another

Question 24

Interest

Answer 24

A fee paid for the opportunity to use someone else’s money over a period of time