module 3 Flashcards
title of mod 3
managing checking and savings accounts
it represents all your money
monetary assets
poeple use monetary assets in three ways
day to day spending
checking and savings accounts
make investments
speed and ease in ocnverting asset to cash
liquidity
funds are free from financial risks
safety
companies that provide checking, savings, insurance, investments, and financial planning services
financial services industry
depository institutions
banks, credit unions, stock brokerage firms, mutual funds, financial service companies, insurance companies
legally allowed to offer checking and savings accounts to individual and business
depository institutions
examples of depository institutions 3
commercial banks, savings banks, credit union
people often call them all simply…
banks
type of banks accepts deposits in checking and savings and provide transactional services
commercial banks
commercial banks that offer services such as
checking, savings, loans, safe-deposit boxes, investment services, financial counseling, automatic payment of bills.
type of commercial bank that focuses on providing traditional banking services in their local communities
community banks
focus primarily on accepting saving and providing mortgage and consumer loans
savings and loan associations
investment companies that raise money by selling shares to the public. a safe place to keep money while awaiting alternative investment oppor
mutual funds
licensed financial institutions that specialize in selling and buying stocks, bonds, and other investments
stock brokerage firms
provide liability, property, health, life, and other insurance products.
insurance companies
a deposit account that performs transactions that allows for withdrawals and deposits. can be withdrawn using checks
a checking account
checking account sometimes called
transaction account
there is not enough money in an account
non-sufficient fund. bounced check, bad check
saving account sometimes called
statement savings account
deposit accounts held at a bank or other financial inst that provides principal security and a modest interest rate
saving account
occurs whenever transaction are conducted without using paper documents
electronic money management
it is a term used in which fund are shifted electronically among various accounts
electronic fund transfer
most savings account come with a debit card, allows you to make purchases and withdraw money from atm machines
atm cards
you can do with your atm card
deposit money, transfer money, check balance, withdraw money
PIN
per iden num
also known as banks card
debit card
cards deduct directly from savings account to pay
debit card
easy to use and reloadable
prepaid card
no check or bank account needed, money pput on card
prepaid card
plastic card with imprinted numbers and a magnetic chip. credit
credit card
store value card, activation fee, expiration date
gift cards
