Banking Flashcards
Interest
A fee that is charged by a lender to a borrower for the right to use the borrowed funds
Commercial bank
bank that offers services to the general public and to companies.
Mutual savings bank
financial institution chartered by a central or regional government, without capital stock, that is owned by its members who subscribe to a common fund
Savings and loan
an institution that accepts savings at interest and lends money to savers chiefly for home mortgage loans and may offer checking accounts and other services.
Credit union
a nonprofit-making money cooperative whose members can borrow from pooled deposits at low interest rates.
Internet bank
electronic payment system that enables customers of a bank or other financial institution to conduct a range of financial transactions through the financial institution’s websit
FDIC
The Federal Deposit Insurance Corporation (FDIC) is the U.S. corporation insuring deposits in the United States against bank failure
EFT
Electronic funds transfer is the electronic transfer of money from one bank account to another
ATM
computer terminal that takes the place of a human bank teller and allows the user to access basic bank services
PIN
required when using bank debit or credit cards
Debit card
card issued by a bank allowing the holder to transfer money electronically to another bank account when making a purchase.
Payee
a person to whom money is paid or is to be paid, especially the person to whom a check is made payable.
Overdraft
a deficit in a bank account caused by drawing more money than the account holds.
Endorsement
endorsement by a bank for a negotiable instrument, such as a banker’s acceptance or time draft
Reconcile
accounting process that uses two sets of records to ensure figures are correct and in agreement.
Certified check
a check that is guaranteed by a bank.
Cashiers check
guaranteed by a bank, drawn on the bank’s own funds and signed by a cashier.
Money order
a printed order for payment of a specified sum, issued by a bank or post office.
Travelers check
a check for a fixed amount that can be cashed or used in payment after endorsement with the holder’s signature.
Pre paid card
A card issued by a financial institution that is preloaded with funds and is used like a normal credit card.
Outstanding
company’s stock currently held by all its shareholders
Cancelled check
a check that has cleared the depositor’s account and has been marked “canceled” by the bank
Money transfer service
cashless modes of payment or payment systems: Electronic funds transfer, an umbrella term mostly used for bank card-based payments. Wire transfer, an international expedited bank-to-bank funds transfer. Giro, also known as direct deposit.
Wire transfer
method of electronic funds transfer from one person or entity to another.
