Banking

Question 1

Interest

Answer 1

Money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt.

Question 2

Commercial Bank

Answer 2

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

Question 3

Mutual Savings Bank

Answer 3

Financial institution chartered by a central or regional government owned by its members.

Question 4

Savings and Loan

Answer 4

An institution that accepts savings at interest and lends money to savers for home mortgage loans. 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

An electronic payment system that enables customers of a bank or other financial institution to conduct a range of financial transactions.

Question 7

FDIC

Answer 7

The Federal Deposit Insurance Corporation is the U.S. corporation insuring deposits in the United States against bank failure. The FDIC was created in 1933 to maintain public confidence and encourage stability in the financial system through the promotion of sound banking practices.

Question 8

EFT

Answer 8

Is a system of transferring money from one bank account directly to another without any paper money changing hands

Question 9

ATM

Answer 9

An abbreviation for automated teller machine. This is a 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

Personal Identification Number

Question 11

Debit Card

Answer 11

a 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

a clause in an insurance policy detailing an exemption from or change in coverage.

Question 15

Reconcile

Answer 15

make (one account) consistent with another, especially by allowing for transactions begun but not yet completed.

Question 16

Certified Check

Answer 16

a check that is guaranteed by a bank.

Question 17

Cashier’s Check

Answer 17

guaranteed by a bank, drawn on the bank’s own funds and signed by a cashier. Cashier’s checks are treated as guaranteed funds because the bank, rather than the purchaser, is responsible for paying the amount.

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

Prepaid 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

remaining to be paid, done, or dealt with.

Question 22

Cancelled Check

Answer 22

A canceled check is a check that has cleared the depositor’s account and has been marked “canceled” by the bank. A canceled check has been paid by the drawee bank and endorsed by the payee, the payee’s bank and the Federal Reserve Bank.

Question 23

Money Transfer Service

Answer 23

Cashless modes of payment

Question 24

Wire Transfer

Answer 24

Wire transfer, bank transfer or credit transfer is a method of electronic funds transfer from one person or entity to another.