Banking Unit Flashcards
What is it called when you put money into your account?
Deposit
What is it called when you take money out of your account?
Withdrawal
How do banks make money?
Off the INTEREST they make when they loan money
What you can buy with the amount of money you have is called…
Purchasing power
What is the purpose of the FDIC?
Insures your money in the bank for up to $250,000
What is it called when you trade goods or services without exchanging any money?
Barter
What is paper money and coins called?
Currency
A written record of all your transactions is called…
Bank statement
How often do you receive a bank statement when you have a checking account?
Once a month
Why should you start writing the the WRITTEN amount of the check to the furthest left of the line?
So nobody can change the amount
What is the booklet for recording your transactions called?
Check register
The total amount in your account on a specific date is called what?
Your account balance
What is it called when you write a check for more money than you have in your account?
Overdraw
The form you fill out in order to put money into your account is called…
Deposit slip
What does ‘for deposit only’ mean?
You can only deposit the check
When you knowingly write a check to someone for more money than you have in your account because you know you will put money in your account before the check is cashed is called…
Floating check
A bank account that allows you to write checks to make payments is called…
Checking account
A form of payment that you fill out for any amount, to whomever you want
Check
Signing the back of your check is called…
Endorsing the check
The percentage of money the bank is going to pay you for borrowing your money is called…
Interest
A machine terminal you use to deposit cash, withdrawal cash, and transfer money between accounts is called…
ATM
Your secret number that identifies you to the ATM as the owner of the card is called…
Your PIN number
Having your paychecks automatically deposited into your account on payday is called…
Direct deposit
Banking where you form a user name and password to access your accounts from your own home is called…
Online banking
You see what you like and buy it without thinking it through is called…
Impulsive spending
Accounts offered where you can deposit money, earn INTEREST, and withdrawal money at any time is called…
Savings account
A deposit in a bank that earns a FIXED interest rate for a time period of 3 months to 10 years is called…
CD
A type of investment that you can buy or can be given to you that earns interest as it matures is called…
Savings bonds
The amount of money written on the bond is called…
Face value
True or false: banks have more regulations than any other business.
True
True or false: banks evaluate people that are trying to borrow money before they will give out a loan.
True
True or false: you have to fill out a check when making a deposit.
False
True or false: when you put money in a CD, you can take out the money before the time is up with no penalty.
False
True or false: CDs typically have lower interest rates than savings accounts.
False
True or false: you should record your deposits in your check register.
True
True or false: you can be charged a service charge for using a different banks ATM.
True
True or false: the more money you have in your savings account, the less interest you will make.
False
What is the one thing you must do before you can cash a check someone has given you?
Endorse the check (sign the back)
Debit cards go with what type of accounts: checking or savings?
Checking
