Chpt. 6 Financial institutions

Question 1

What is a Financial Institution?

Answer 1

A Financial Institution provides financial services for its customers.

(E.g: Storing money, Managing payments, Providing loans)

Question 2

Give 4 Examples of Financial Institutions

Answer 2

1) Commercial banks
2) Credit Unions
3) Building Societies
4) The post office (An Post)

Question 3

Give 4 Examples of Financial Institutions

Answer 3

1) Commercial banks
2) Credit Unions
3) Building Societies
4) The post office (An Post)

Question 4

What’s a commercial bank?

Answer 4

A bank that provides financial services to the general public and to businesses

Question 5

What types of accounts are available to customers?

Answer 5

Current accounts and Deposit/Savings accounts

Question 6

What is a current account?

Answer 6

An account used for
1) day-to-day banking needs
2) Storing money safely
3) Receiving your income
4) Paying for goods and services
5) Paying bills + Transferring money to other people

They’re offered by commercial banks, credit unions and building societies

Question 7

What’s a Deposit/Savings account?

Answer 7

Account used to save money.

Offered by commercial banks, credit unions, building societies and An Post

Can earn Interest

Money is safe and secure

Question 8

What are Lodgments + Withdrawals?

Answer 8

Lodgements are amounts paid into the account

Withdrawals are amounts paid out of the account

Question 9

What do you need to open a current/deposit account?

Answer 9

1) Photographic proof of identity (passport, driving license)

2) Proof of address (recent utility bill)

3) Personal Public Service Number (provided by government)

Question 10

What does PPSN stand for?

Answer 10

Personal Public Service Number

Question 11

What does ATM stand for?

Answer 11

Automated Teller Machine

Question 12

What does PIN stand for?

Answer 12

Personal Identification Number

Question 13

What are Contactless Payments?

Answer 13

A fast way to use debit cards to pay for goods under €50. PIN not needed

Question 14

Name 3 advantages of Contactless Payments

Answer 14

1) It’s safer. No need to carry cash

2) Quicker and more Convenientthan going to ATM or using cash

3) Easier to use. Just tap card against reader.

Question 15

Name 3 Disadvantages of Contactless Payments

Answer 15

1) If card’s stolen, risk of it being used without PIN

2) Can only be used for purchases up to €50

3) May be an extra cost for each transaction

Question 16

What’s a Debit Card?

Answer 16

Allows consumers to pay for goods/services without cash.

Provides electronic access to money in your bank account

4-Digit PIN

Money is electronically transferred from your account to the retailer’s account

Question 17

What’s a Digital Wallet?

Answer 17

Online computer service that allows you to make electronic transactions.

Bank acc can be linked to digital wallet

E.G) Apple Pay, Google Pay