Banking Questions Flashcards
What is a Bank?
An establishment for the custody, loan, exchange, or issue of money for the extension of credit, and for facilitating the transmission of funds
List 5 customers of banks
Individuals, clubs, businesses, religious organizations, cities
What is the FDIC?
what does it do?
(Federal deposit insurance cooperation)
The FDIC insures each qualified money account in a bank for up to 250,000$
Why do we have money substitutes?
To keep our money safe and to make it more convenient
Bank statement
A printed Record of the balance in a bank account and the amounts to have been paid into it and withdrawn from it 
Service fee
A fee made by the bank for their services
Interest
Money that the bank pays you for keeping your money at that bank
Debit card
You may pay for purchases from cooperating businesses with this card and the transactions are recorded directly to your bank account
Credit card
Enables customers to charge purchases up to a maximum amount set by the bank
ATM
(Automated teller machine)
A specialized computer that makes it convenient to manage a bank account holders funds
Cashiers check
Sometimes called an officers check. It is drawn by one of its own officers
Travelers check
A cash substitute that is insured against loss or theft. You can buy travelers checks from an agency such as an American automobile association or from a bank
Money order
A check drawn on an agencies or banks on account by an authorized officer of that agency or bank
Bank draft
I’ll check drawn on one bank by another bank to transfer funds from one bank to another and to disperse money as a part of a loan
Collateral
Something pledged as security for repayment of the loan to be forfeited in the event of a default
