Banking Terms

Question 1

Financial institutions owned by shareholders and operated for their profit.

Answer 1

Commercial Bank

Question 2

A financial institution the operates only over the internet using online banking.

Answer 2

Internet Bank

Question 3

The movement of funds by electronic means

Answer 3

EFT

Question 4

Personal identification number

Answer 4

PIN

Question 5

Automated teller machine

Answer 5

ATM

Question 6

A card that allows the user to subtract money from their bank account in order to get cash, or make a purchase

Answer 6

Debit Card

Question 7

A nonprofit institution owned by its members

Answer 7

Credit Union

Question 8

The person who a check is made out to

Answer 8

Payee

Question 9

A check that has been stamped and sometimes perforated to show that it has been payed

Answer 9

Canceled Check

Question 10

The lack of sufficient funds to cover the full amount of a check

Answer 10

Overdraft

Question 11

Checking account earn interest often have more restrictions such as a higher minimum balance.

Answer 11

Interest

Question 12

A signature on the back of the check that entitles the payee to deposit it or transfer it to someone else

Answer 12

Endorsement

Question 13

Bring the bank statement and your own record of transactions into agreement

Answer 13

Reconcile

Question 14

To find any transactions in your check register that you didn’t mark off.

Answer 14

Outstanding

Question 15

Is a check from a personal checking account that has been stamped by the bank to insure that it has the funds to pay.

Answer 15

Certified check

Question 16

It is a check the is issued and guaranteed by a bank, you pay the bank cash or credit and they give you a check to use.

Answer 16

Cashiers check

Question 17

Is a purchase used to pay a specific amount to a particular payee

Answer 17

Money order

Question 18

A card that has a set amount on it to be used for anything

Answer 18

Prepaid card

Question 19

A financial institution overate does by trustees for the benefit of depositors.

Answer 19

Mutual savings bank

Question 20

To provide funds to home buyers or big purchases

Answer 20

Savings and loans

Question 21

Moves funds to one bank from another by electronic

Answer 21

Wire transfer

Question 22

Can send funds almost anywhere in the world

Answer 22

Money transfer service

Question 23

The Federal Deposit Insurance Corporation is an independent federal agency insuring deposits in U.S. banks and thrifts in the event of bank failures

Answer 23

FDIC