Chapter 8 - Introduction To Commercial Banks

Question 0

What is a savings/deposit account?

Answer 0

An account for customers who want to save money. Interest is payed each year on the amount saved.

Question 1

What is a commercial bank?

Answer 1

A business the provides financial services to personal and business customers.

Question 2

What is DIRT?

Answer 2

Deposit Interest Retention Tax. This tax is payed on interest earned on savings.

Question 3

What is an ATM?

Answer 3

Automated Teller Machine.

Question 4

What is a lodgement?

Answer 4

Putting money into your savings or current account.

Question 5

What is a withdrawl?

Answer 5

Taking money from your savings or current account (by using a withdrawal slip, ATM, cheque)

Question 6

What is a PIN?

Answer 6

Personal identification number.

Question 7

What is a night safe?

Answer 7

A metal drawer located in the wall of most banks branches. They are used by customers who need to lodge large amounts of cash when the bank is closed. Useful for owners of bibs and late night shops.

Question 8

What is IBAN?

Answer 8

International Bank Account Number. An internationally agreed means of identifying bank accounts internationally.

Question 9

Name four commercial banks in Ireland.

Answer 9

1. AIB - Allied Irish Banks
2. Bank of Ireland
3. Ulster Bank
4. Permanent TSB

Question 10

What is an advantage of a savings/deposit account?

Answer 10

Receive interest on savings each year.

Question 11

Name three advantages of a current account.

Answer 11

1. Customers can use a cheque or Laser card to pay for goods and services, which is safer and more convenient than having to pay with cash.
2. You can have your wages payed directly into a current account.
3. Customers can apply for a bank overdraft.

Question 12

What are the differences between a current account and a deposit account?

Answer 12

1. No interest earned on a current account as there is on a deposit account.
2. Overdraft on current as not on deposit.
3. Cheques and Laser cards with current account as none on a deposit account.

Question 13

How do you open a bank account?

Answer 13

1. Fill in an application form.
2. Proof of address e.g. recent household bill.
3. Proof of identity e.g. passport or drivers license.
4. Sample of signature.

Question 14

What are the uses of an ATM card?

Answer 14

1. Lodge/withdrawal money to account
2. Transfer money between accounts
3. Order a statement
4. Print a mini statement
5. Pay a bill
6. Check your balance
7. Top up mobile phone