interest

Question 1

interest

Answer 1

the cost of using money - paid by banks to their depositors

Question 2

checking accounts

Answer 2

a bank account that allows the account holder to withdraw money, pay a bill, or make a purchase by writing checks

Question 3

check

Answer 3

a preprinted form ordering a bank to withdraw money from an account and pay it to someone else

Question 4

debit card

Answer 4

a plastic card used to withdraw cash from a checking account or make payments electronically without having to write a check

Question 5

commercial banks

Answer 5

the most common type of financial institution - privately owned, offering a wide range of services, and run to make a profit

Question 6

credit unions

Answer 6

non-profit financial institutions that are owned by their members and organized for the members’ benefit

Question 7

payday lenders

Answer 7

companies that make small short-term, high-interest loans to tide a person over “until payday”

Question 8

deposit

Answer 8

an addition of funds to an account balance

Question 9

withdrawal

Answer 9

the removal of cash from an account, either at the bank or at an ATM

Question 10

debit

Answer 10

any transaction that removes funds from an account, including cash withdrawals, checks written on the account, and fees charged by the bank

Question 11

credit

Answer 11

any positive addition to an account balance

Question 12

transfer

Answer 12

any movement of funds from one account to another

Question 13

stop-payment order

Answer 13

a request that a bank or another financial institution not cash a particular check

Question 14

deposit slip

Answer 14

a document that accompanies bank deposits, showing the account holder’s name and account number and the amount to be deposited

Question 15

reconciling

Answer 15

matching one’s personal account records with the bank’s records

Question 16

Non-Sufficient Funds (NSF)

Answer 16

refers to the status of a checking account that does not have enough money to cover transactions. NSF also describes the fee charged when a check is presented but cannot be covered by the balance in the account