Banking

Question 1

Interest

Answer 1

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

Question 2

Commercial banks

Answer 2

Are financial institutions owned by shareholders and operated for their own profit

Question 3

Mutual savings banks

Answer 3

Are stats charted financial institutions operated by trustees for the benefit of depositors

Question 4

Saving and Loans

Answer 4

Are financial institutions that originally specialized in providing funds to home buyers

Question 5

Credit union

Answer 5

A non profit financial institution owned by its members

Question 6

Internet banking

Answer 6

Is a financial institution that operates exclusively over the internet using online banking

Question 7

FDIC(Federal Deposit Insurance Corporation)

Answer 7

is a United States government corporation providing deposit insurance to depositors in US banks

Question 8

EFT

Answer 8

The movement of funds by electronic means

Question 9

ATM

Answer 9

a machine that you use to get cash from using your credit card

Question 10

PIN(Personal Identification number)

Answer 10

Is a secret code that protects the security of your accounts, allowing you alone to access them

Question 11

Debit card

Answer 11

a card (usually plastic) that enables the holder to withdraw money or to have the cost of purchases charged directly to the holder’s bank account

Question 12

Payee

Answer 12

Can take the check to his or her own bank and cash or deposit it.

Question 13

Overdraft

Answer 13

A check written for more money than your account contains

Question 14

Endorsement

Answer 14

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

Question 15

Reconcile

Answer 15

verifying that information on a bank statement and a checkbook are in agreement

Question 16

Certified check

Answer 16

Is a check from a personal checking account that has been stamped by the bank to guarantee that there are sufficient funds in the account to cover it.

Question 17

Cashier’s check

Answer 17

Is a check issued and guaranteed by a bank.

Question 18

Money order

Answer 18

Is a purchased certificate used to pay a specified amount to particular payee.

Question 19

Travelers check

Answer 19

Are documents that function as cash, but can replaced if lost or stolen

Question 20

Prepaid cards

Answer 20

Cards sold in specified dollar amounts that can be used to purchase products or services. Looks like a credit but is preloaded with cash.

Question 21

Outstanding transaction

Answer 21

Ones that were received by the bank after the closing date of your statement

Question 22

Cancelled check

Answer 22

Checks that are paid by the bank, deducted from the depositor’s account, and returned with the bank statement.

Question 23

Money transfer service

Answer 23

generally refers to one of the following cashless modes of payment or payment systems

Question 24

Wire Transfer

Answer 24

An electronic communication that moves funds from an account in one bank to an account in a different bank instantly.