Banking

Question 1

Interest

Answer 1

A fee that is charged by a lender to a borrower for the right to use the borrowed funds

Question 2

Commercial bank

Answer 2

bank that offers services to the general public and to companies.

Question 3

Mutual savings bank

Answer 3

financial institution chartered by a central or regional government, without capital stock, that is owned by its members who subscribe to a common fund

Question 4

Savings and loan

Answer 4

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.

Question 5

Credit union

Answer 5

a nonprofit-making money cooperative whose members can borrow from pooled deposits at low interest rates.

Question 6

Internet bank

Answer 6

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

Question 7

FDIC

Answer 7

The Federal Deposit Insurance Corporation (FDIC) is the U.S. corporation insuring deposits in the United States against bank failure

Question 8

EFT

Answer 8

Electronic funds transfer is the electronic transfer of money from one bank account to another

Question 9

ATM

Answer 9

computer terminal that takes the place of a human bank teller and allows the user to access basic bank services

Question 10

PIN

Answer 10

required when using bank debit or credit cards

Question 11

Debit card

Answer 11

card issued by a bank allowing the holder to transfer money electronically to another bank account when making a purchase.

Question 12

Payee

Answer 12

a person to whom money is paid or is to be paid, especially the person to whom a check is made payable.

Question 13

Overdraft

Answer 13

a deficit in a bank account caused by drawing more money than the account holds.

Question 14

Endorsement

Answer 14

endorsement by a bank for a negotiable instrument, such as a banker’s acceptance or time draft

Question 15

Reconcile

Answer 15

accounting process that uses two sets of records to ensure figures are correct and in agreement.

Question 16

Certified check

Answer 16

a check that is guaranteed by a bank.

Question 17

Cashiers check

Answer 17

guaranteed by a bank, drawn on the bank’s own funds and signed by a cashier.

Question 18

Money order

Answer 18

a printed order for payment of a specified sum, issued by a bank or post office.

Question 19

Travelers check

Answer 19

a check for a fixed amount that can be cashed or used in payment after endorsement with the holder’s signature.

Question 20

Pre paid card

Answer 20

A card issued by a financial institution that is preloaded with funds and is used like a normal credit card.

Question 21

Outstanding

Answer 21

company’s stock currently held by all its shareholders

Question 22

Cancelled check

Answer 22

a check that has cleared the depositor’s account and has been marked “canceled” by the bank

Question 23

Money transfer service

Answer 23

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.

Question 24

Wire transfer

Answer 24

method of electronic funds transfer from one person or entity to another.