Ch 8- Finanicial Services

Question 1

Financial institution

Answer 1

Provides financial services for its customers eg savings

Question 2

Types

Answer 2

Commercial banks
Credit union
Post office
Building society

Question 3

Services

Answer 3

Current and deposits accounts
Loans
Online banking
Foreign currency exchange

Question 4

Commercial bank

Answer 4

A bank that offers financial services to the public and to businesses

Question 5

Advantage of commercial banks

Answer 5

Great range of services

Online banking

Question 6

Disadvantages

Answer 6

High interest

Charges fees

Question 7

Bank account

Answer 7

For saving Money where interest is earned

Question 8

Types of bank accounts

Answer 8

Deposit- used for saving. Money is lodged and interest is earned. Safer. Interest is added. Less temptation to spend
Current- used for day to day living. Statement is received showing all transactions

Question 9

Money out of account

Answer 9

Withdrawal

Question 10

Money into account

Answer 10

Lodgements

Question 11

Requirements for opening a bank account

Answer 11

Proof of identity
Proof of address
Ppsn

Question 12

Lodging money

Answer 12

Over counter
Paypath
Social welfare.
Any 3rd party

Question 13

Withdrawing money

Answer 13

ATM
Credit card
Withdrawal slip
Credit transfer
Direct debit
Standing order
Cheque

Question 14

ATM

Answer 14

Automated teller machine
Withdraw and lodge money
Check balance
Order bank statement

Question 15

Pin

Answer 15

Personal identification number

4 digit number that’s unique to your card

Question 16

Debit card

Answer 16

Used by current account holders to pay for goods
Card is swiped and type in PIN
Money is automatically withdrawn form account

Question 17

Contactless payments

Answer 17

Used to pay for items under €30

Doesn’t require pin

Question 18

Direct debit

Answer 18

Current account holders give permsion to a business to withdraw variable amounts form account
Time also Varys
Eg ESB bill

Question 19

Standing order

Answer 19

Instructs the bank to pay a fixed sum on a fixed date to a business
Eg mortgage repayments

Question 20

Credit transfer

Answer 20

Transferring money to another account

Question 21

Cheques

Answer 21

Used to make payment

Question 22

Drawer

Answer 22

Person who write the cheque

Question 23

Drawee

Answer 23

The bank

Question 24

Payee

Answer 24

Who the cheque is going to

Question 25

Bank fees

Answer 25

Use of atm
Using debit card
Money transfer
Overdraft interest

Question 26

Bank Statement

Answer 26

Shows all transactions

Question 27

Bic

Answer 27

Bank identifier code

Question 28

Iban

Answer 28

International bank account number

Question 29

Bic and iban

Answer 29

Helps process international payments automatically

Faster, safer and cheaper

Question 30

Pac

Answer 30

Personal access code

Question 31

Telephone and online banking advantage

Answer 31

Saves time
Reduced paperwork
Convenient

Question 32

Disadvantage

Answer 32

Small branches close
Security risks
Viruses

Question 33

Store cards

Answer 33

Credit card for one particular store

Question 34

Charge card

Answer 34

Like a credit card. Membership fee

No interest eg America express

Question 35

Currency exchange

Answer 35

Allows customers to change money into another currency

Fee= commission